So D2 problems aren't just limited to football-playing schools?
The D2 model just does not work in this new environment. The schools that are struggling heavily in the new higher ed reality are regional public schools and privates that are overloaded with debt - most of these schools are in Division II.
The smart ones like North Alabama, West Florida, West Georgia started moving to the FCS. Gone are the days of competing for titles but they will survive. Delta State, West Alabama, Valdosta State would be closed tomorrow if our politicians had the stomach for what it would take. Taxpayers are essentially supplementing the athletic departments at these schools.
Private schools have a debt problem. Trevecca in Nashville moved to D2 and have $100 million in debt. They do not have the donors or the ability to manage that debt. Christian Brothers has about $30 MM in debt and they are struggling. My guess is they believe moving back to the NAIA will make them more competitive, therefore more attractive. The NAIA allows for international recruiting and does not have age limits. Plus, sports like track, swimming, etc - everyone makes the national championships.
I forsee by 2030, there will be a clear divide between Power 4+, Division I G5/FCS/D2, and Division III. Not much left of D2. They made their own bed. They had a chance in the early 90s to fix this and they voted against the Division I-AAA model, which would have given them access to March Madness without having to fund scholarships at the D1 level. This was going to pass then the Division II teams led by North Alabama voted it down at the Convention. UNA won three D2 natties in the next few years but the split of the GSC rendered them powerless. Now they are an FCS program just looking for buy games.