The End of the Gold Rush? North America’s Overseas University Campuses Face a Reckoning

By Advay December 12, 2025
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The glittering promise of Transnational Education (TNE); establishing fully-fledged university campuses abroad, appears to be losing its shine for North America’s higher education elite. While the US still boasts a significant lead with 97 overseas sites compared to Canada’s eight, the initial ‘gold rush’ fervour of the early 21st century is reportedly over, according to experts at the Cross-Border Education Research Team.

Setting up a campus thousands of miles away has proven to be a financially and politically precarious venture. The model demands vast initial investment, which can easily be wiped out if the institution fails to attract enough students or runs into unexpected local political difficulties.

Dr. Jason E. Lane, a founder of the Cross-Border Education Research Team, highlighted the core challenge: maintaining the “quality of teaching and offering the types of educational experiences that are available on the main campus” is no mean feat. It is perhaps no surprise then that academic heavyweights like Harvard and Princeton have wisely steered clear of this risky model, choosing instead to build their international reputation through more flexible partnerships.

This caution is backed by recent, high-profile retreats. Last year, Texas A&M University announced the closure of its two-decade-old campus in Qatar, citing a desire to focus on its “core work” at home, suggesting a branch campus 8,000 miles away was no longer necessary for collaboration. Similarly, the University of Calgary quietly shuttered its Qatar site earlier this year.

For critics, these closures confirm a deeper flaw. David Robinson of the Canadian Association of University Teachers suggests that, in the final analysis, “branch campuses have largely turned out to be a failed business model.” He also raises a long-standing concern—the ethical tightrope walk of establishing sites in countries where fundamental academic freedom may not be upheld or respected in the same way it is in North America.

The focus is now shifting from a ‘go-it-alone’ expansion to more pragmatic strategies. Institutions are increasingly looking to partnerships, and the global landscape of TNE is becoming more dynamic, with Australia punching above its weight thanks to a long-term internationalisation strategy. New branch campuses are also popping up in regions like Africa, which is seen as a key growth market, reflecting shifts in global economic and political influence.

The dream of planting institutional flags across the globe has been replaced by a more sober reality. While TNE remains a crucial element of international higher education, the North American model of expensive, stand-alone overseas campuses is facing a clear reckoning. Universities are now having to weigh the significant financial and reputational risks against the diminishing rewards, leading to a period of strategic recalibration. The future lies not in an overseas land grab, but in flexible, ethically sound, and sustainable collaborative models that genuinely enhance student experience and academic quality, regardless of geography.

Source: THE PIE NEWS

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