The Merger Announcement: A Lifeline for Saku University
In a significant development for higher education in Nagano Prefecture, Japan, the operating corporation of Saku University, School Corporation Saku Gakuen (学校法人佐久学園), has agreed to merge with School Corporation Shingakkai (学校法人信学会). The announcement came on February 2, 2026, following a merger contract signed on January 23, 2026. This move addresses longstanding financial difficulties exacerbated by enrollment shortfalls and the loss of key government subsidies.
Saku University, located in Saku City, has been a vital institution for training medical and welfare professionals since its establishment in 2008. The merger, set for June 1, 2026, will see Shingakkai absorb Saku Gakuen entirely, with the latter dissolving upon completion. Pending approval from Nagano Prefecture, this integration promises stability without disrupting academic programs or student capacity.
Shingakkai's Chairman Nobuaki Kobayakawa emphasized the regional importance, stating, "Saku University is for the Saku region. We want to continue and develop its intentions." Saku City Mayor Seiji Yanagida highlighted its role in regional medical care and welfare, underscoring municipal support.
Historical Context of Saku University
Established in 2008 as a private university in Saku City, Nagano Prefecture, Saku University (佐久大学) was designed to meet local needs in healthcare and welfare. Initially planned as "Shinshu Saku University," it opened with a focus on practical education. Key milestones include the 2009 launch of a midwifery program, the 2012 opening of its Graduate School of Nursing, and the integration of Shinshu Junior College as Saku University Shinshu Junior College Department in the same year.
The university comprises the Faculty of Nursing (nursing discipline, annual intake 90 students), Faculty of Human Welfare (human welfare discipline, 70 students), a master's program in nursing, and the junior college department offering child welfare (20 students) and care welfare (10 students) majors. Later additions include renaming care welfare to welfare discipline in 2016, opening the human welfare faculty in 2021, and a midwifery advanced course in 2022. These programs have positioned it as a key producer of regional healthcare workers amid Japan's aging population.
Deep Dive into Financial Difficulties
Saku Gakuen's challenges stem from chronic operating deficits, ranging from 100 million to 180 million yen annually between fiscal years 2022 and 2024. These arose primarily from substantial enrollment shortfalls, particularly in the Faculty of Human Welfare, which recorded a mere 47.3% capacity fulfillment in recent data. Overall, the university's rate stood at 71.2%, with nursing faring better at 89.2% but insufficient to offset losses elsewhere.
Japan's declining birthrate has intensified this pressure. Nationally, 53% of private universities operated below capacity in 2025, with rural and small-scale institutions hit hardest. In Nagano, like many prefectures, fewer high school graduates mean fiercer competition for students. Saku Gakuen also bore the cost of independent scholarships after exclusion from national support schemes.
| Program | Capacity | Enrollment | Fulfillment Rate (2025) |
|---|---|---|---|
| Nursing Faculty | 360 | 321 | 89.2% |
| Human Welfare Faculty | 300 | 142 | 47.3% |
| Child Welfare (JC) | 20 | 18 | 90.0% |
| Care Welfare (JC) | 10 | 10 | 100.0% |
| Total | 690 | 491 | 71.2% |
This table illustrates the disparities driving financial strain.
The Impact of MEXT Subsidy Cuts
A critical blow came in fiscal year 2025 when Saku University was excluded from the Ministry of Education, Culture, Sports, Science and Technology's (MEXT) New Scholarship System for higher education (高等教育の修学支援新制度). This program supports low-income students but requires universities to maintain at least 50% capacity fulfillment in recent years. Failure leads to ineligibility, slashing vital funds and complicating recruitment as students seek subsidized institutions.
Post-merger, eligibility is expected to resume in FY2027 under Shingakkai's management, providing a financial lifeline. MEXT adjusts private school subsidies based on fulfillment rates: reductions up to 50% for rates below 40%. Nationally, this pressures 52% of private universities into deficits, accelerating mergers.
Profile of Shingakkai: Building a K-16 Educational Pipeline
Founded in 1953 as a foundation and evolving into a school corporation in 2010 via integration with Shinshu Gakuen, Shingakkai operates an extensive network across Nagano. It manages multiple kindergartens and nurseries (e.g., Amadori, Showa), preparatory schools (Nagano, Shinshu, Ueda Yobiko), Saku Chosei Junior/Senior High School—the prefecture's first combined middle-high school—and specialized programs like Code Academy High School for programming.
- Kindergartens/Nurseries: 10+ facilities emphasizing early childhood development.
- High Schools: Saku Chosei, focusing on holistic education.
- Prep Schools: Partnerships with Sundai for exam prep.
- Cultural/Social: Nagano Culture Center for lifelong learning.
The merger creates Nagano's first group spanning kindergarten to university, enabling seamless student pipelines from high school to Saku University via targeted recruitment.
Shingakkai Group official site
Merger Timeline and Process
The process unfolded methodically:
- Late November 2025: Merger talks initiated, mediated by Saku City.
- January 2026: City provides 83.5 million yen subsidy for interim support.
- January 23, 2026: Contract signed.
- February 2, 2026: Joint press conference.
- Ongoing: Nagano Prefecture approval review.
- June 1, 2026: Effective date; Shingakkai assumes all rights/obligations.
Assurances for Students and Faculty
University name, faculties, departments, and enrollment quotas remain unchanged, ensuring continuity for current students (around 1,500 total) and applicants. No program cuts or campus relocations are planned. Shingakkai commits to enhancing education through resource integration, operational efficiency, and recruitment synergies. For faculty, this means job security and potential access to broader professional networks in Nagano's education sector.
Professionals seeking opportunities in Japan's higher education can explore roles at stable institutions like those under evolving groups such as Shingakkai. Check higher ed jobs or university jobs for faculty and admin positions in Japan via AcademicJobs Japan listings.
Saku City's Pivotal Role
Recognizing Saku University's public value in producing medical professionals, Saku City actively mediated the merger and injected 83.5 million yen in January 2026 to sustain operations during negotiations. Local leaders view it as essential for regional healthcare, preventing potential closure amid national trends.
Asahi Shimbun coverageJapan's Broader Private Higher Education Crisis
Saku's situation mirrors a national epidemic. Japan's 18-year-old population peaks in 2026 before plummeting, with private universities—enrolling 75% of students—bearing the brunt. In 2025, 53% fell below capacity, up from prior years; 33 junior colleges halt recruitment in 2026. Rural areas like Nagano suffer most, with 90% of Shikoku operators in deficits.
Government incentives promote mergers: enhanced subsidies for compliant institutions, penalties for chronic under-enrollment. Recent cases include public takeovers and consolidations, with 25% of universities open to re-editing in 2023 surveys. This Saku merger exemplifies constructive adaptation.
- 52% of private universities in deficit (2026 projections).
- 59% below quota in spring 2025.
- 60+ enrollment cuts planned for 2026.
Stakeholder Reactions and Social Media Buzz
Reactions on X (formerly Twitter) have been largely supportive, with local politicians celebrating subsidy restoration and regional continuity. Posts highlight Saku City's mediation and FY2027 MEXT fund revival. No major opposition from faculty unions noted in coverage, suggesting broad acceptance.
Experts praise such mergers for resource pooling, echoing national calls for consolidation amid demographic shifts.
Future Outlook: Stability and Growth Potential
Post-merger, Shingakkai will leverage its K-12 network for recruitment, targeting high schoolers from Saku Chosei and prep schools. Restored subsidies, efficiency gains, and enriched programs could boost fulfillment rates. For Japan's higher ed, this model—local mediation, vertical integration—offers a blueprint for sustainability.
Aspiring academics and administrators in Japan can prepare by honing skills for merged entities. Resources like higher ed career advice, Rate My Professor, and faculty jobs on AcademicJobs.com aid transitions. Explore Japan university jobs for openings in Nagano and beyond.
In conclusion, the Saku University merger signals resilience in Japanese higher education, turning crisis into opportunity for regional impact.
