Over 50% of Japan's private universities have descended into a financial deficit. The increased strain on the country's higher education sector is a result of significant demographic shifts and economic challenges. The fallout from these changes has been amplified by the financial pressure from the recent pandemic. Universities are looking for ways to remain viable amidst these changing market conditions.

In Japan, education is highly valued, and the financial stability of private universities is a matter of national concern. Traditionally, private universities have been considered superior both in quality of education and in prestige. These institutions rely heavily on student tuition, so with the country's declining birthrate leading to reduced student numbers, universities are increasingly facing financial difficulties.

In contrast, in the US or EU, a large proportion of universities are public and receive considerable government funding, which safeguards these institutions against similar challenges to an extent. However, private colleges and universities in the US and EU also face financial challenges due to factors such as decreasing enrollment and increasing operation costs.