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Diving overview:
- Keystone College in Pennsylvania has until August 1 to demonstrate compliance with accreditation standards. Otherwise, you may lose access to federal student aid and be shut down.
- that much Last week, the Central Higher Education Commission announced the private, non-profit organization. Explicit Order – This is the final warning before MSCHE grants certification. Keystone would require certification bodies to provide multi-year budgets and independent audits “to ensure financial viability.”
- The financially struggling college has already provided MSCHE with the requested education plan, a document that would help students complete their degrees elsewhere if the institution closes. college They said they were negotiating with Potential “investment partners” After plans to acquire it by a non-profit organization fell through.
Dive Insights:
Earlier this year, Keystone announced that MSCHE and Pennsylvania Department of Education to be acquired by Washington Institute for Educational Research, Nonprofit organization based in Washington, DC
This proposal made WIER the sole member of Keystone but left academic and administrative duties to the university's trustees. However, the deal fell through shortly thereafter.
In the aftermath, MSCHE posted a notice last week saying Keystone was “at risk of imminent closure.”
“Unfortunately, this not only immediately weakened the university’s financial position but also increased scrutiny from accrediting agencies.” President John Pullo i saidThis is a message to Keystone staff and students. He noted that the deal was aimed at raising new funds for the university to increase enrollment.
Last week, MSCHE said it had received a “substantive change request for institutional closure” from Keystone. teaThis is usually a sign that a university is closing. But Pullo said it was at MSCHE's request and the university followed “with the understanding that it could be revoked at any time.”
Keystone is already in negotiations with a new investment partner, and the pair said they have reached a “general agreement” with MSCHE. Negotiations are ongoing.
“But while I remain hopeful, I must also be clear that failure to successfully conclude an agreement could result in the suspension of the university’s operations,” he said.
An MSCHE spokesperson said Friday that the university is aware of potential partners for Keystone, but that the university's sudden closure remains a concern because reviewing mergers and acquisitions can take up to a year.
If MSCHE revokes Keystone's accreditation, the college would become ineligible for federal financial aid and could close. Nearly 99% of Keystone's full-time undergraduate students received federal aid for the 2021-22 academic year, according to federal data.
An institution with 156 years of history We have had financial difficulties for many years. For the past 10 years, MSCHE has required Keystone to submit documentation demonstrating improvements in university financial and student success indicators.
The university had a revenue surplus in fiscal year 2021 but had budget deficits in the previous four years, according to tax filings.
Enrollment at Keystone has also steadily declined over the past decade. The college will have 1,131 students in the fall of 2022, down about 33% from 1,683 in the fall of 2012, according to federal data.
Recently, several small, private, non-profit colleges and universities have closed suddenly due to financial and demographic issues. But Keystone's library director, Mari Flynn, claimed in a December commentary. For Higher Education Dive These institutions are demanding closure with dignity for their employees.
He then wrote, “Let’s attempt a small, dignified death through goodwill, honest evaluation, and building consensus.” “Full or partial termination can still be honored.”