Enrollment challenges and financial strain are testing the viability of higher education. Strategic alliances offer a path forward, when undertaken with care. Colleges and universities face a markedly different landscape today than they did in 2010. Overall, student enrollment and revenues are falling. Inflation has accelerated steadily, pushing operating costs up in recent years. These forces are creating financial pressures for institutions and the students they serve. Whether they threaten the overall financial viability of an institution depends on the size, profile, and funding of the university.