This trend has been seeing an uptick and it's primarily because of the debt issue. The liberal arts are an integral part of any civilized society and they can often pay well but the debt to acquire them doesn't match up.
As the cost to run a university or a college increases, it's going to become harder and harder for small colleges and universities to keep the tuition reasonable. Particularly when they don't run large profit centers like business schools or law schools. These schools often lack the type of endowments that other larger schools use to handle the tough times.
I think
@Falsedawn has the right of it. You're not going to see an increase in "selective" schools. You're going to see a decrease in specializing colleges for large universities or universities which can attract the most full pay students. Now, a college can always claim to be more "selective" by simply goosing the application numbers, which a number of them already do. They encourage thousands of kids with no realistic chance of getting in to apply so that they can reject them and increase their rejection rate. None of this makes them "better" than they were previously, they're just superficially more selective. If this attracts parents with the money to pay full freight...even better. But then this creates the false narrative that the selectivity is based on selecting only the best students when it's not, it's based on selecting the economically viable and convincing those students that that isn't what's going on.
Anyhoo, expect more closings. And expect more people to complain about not getting into the college of their choice because those kids who are selecting liberal arts degrees with high gpa's and test scores are just going to apply to the remaining colleges for their liberal arts degrees.