Dive Brief:
- Albright College is set to borrow $15 million from its $65 million endowment after receiving approval from its board of trustees.
- In a Monday statement, the private Pennsylvania institution touted the board’s sign-off on the loan as a show of “confidence in Albright’s direction” and said it plans to use the capital to “strengthen the College, enhance enrollment, and secure Albright’s future.”
- Albright projects a $10 million operating surplus for the 2025-26 fiscal year after recent years of expanding deficits and concerns about cash levels.
Dive Insight:
Borrowing from an endowment is often a red flag that a college is burning through its last available resources. In Albright’s case, the college says it is using the money to solidify a long-term turnaround.
Not long ago, the college was issuing signs of distress. When it requested legal permission to tap its endowment for capital, Albright noted that its net assets took a $46 million hit between 2022 and 2024. That pushed the college to take “significant measures to lower its deficit,” including cutting 53 employee positions, according to a Spotlight PA report.
In fiscal 2023, Albright reported a $20.3 million total deficit, well more than double the prior year’s deficit. Its deficit rose even higher, to $23.1 million in fiscal 2024.
Those fiscal woes followed years of enrollment declines. Between 2018 and 2023, fall headcount shrunk by nearly 15%, according to federal data.
For 2025, the college has 1,150 students, an increase of about 50 students compared to last year, while first-year and transfer enrollment increased 21.5% to 469 students, according to an Albright spokesperson.
As it sought capital to fund a turnaround, the college couldn’t find a bank loan with manageable interest rates. And so it turned to its endowment.
The $15 million loan will be drawn down as needed and “comes with a clear repayment plan that includes defined terms, scheduled payments, and quarterly reporting for full accountability and transparency,” Albright said. Per the authorization terms, the repayment period extends 20 years and the loan will carry a minimum of 3% interest.
It’s also being combined with major new gifts as well as $4 million in grant funding from the state Redevelopment Capital Assistance Program, according to the release.
With the new funding, Albright is investing in capital projects and deferred maintenance. The “centerpiece” of those improvements, it said, is an expansion and renovation of the college’s central library. The building, which is over 60 years old, will get a student support and disability center, a writing and tutoring center, expanded cultural and technological resources, new conference space and a cafe.
With the investments, budget stabilization and recent enrollment growth, Albright sounded a triumphant note in announcing the loan, describing a “remarkable financial turnaround” and gearing up for growth ahead.
