Dive Brief:
- The University of Providence, in Montana, will close at the end of summer 2027, following a vote from its board on Tuesday.
- The Catholic nonprofit cited "years of sustained enrollment decline and increasing financial pressure" in a statement. This spring, it said it faced a $8 million annual budget gap in the coming years, and its accreditor put it on probation over financial stability concerns in August.
- Its board explored "all options" to stay open — including academic and budget cuts, new enrollment and revenue strategies, a merger or being acquired — but ultimately decided to undergo "a planned closure, rather than the risk of an abrupt ending," according to a FAQ on the college's website.
Dive Insight:
Like many small private colleges, the University of Providence has faced significant enrollment and revenue challenges in recent years. Its fall headcount dropped 23.5% from 2019 to 2024, reaching 763 students, according to federal data.
But one of its most significant death blows was the expected loss of funding from Providence, a healthcare system affiliated with the same religious order as the university. The system was set to end an annual subsidy to the university — some $8 million a year, per Montana Free Press — at the end of 2027.
Against that backdrop, the University of Providence declared financial exigency at the end of last year.
In May, its leaders said it would undergo an academic review and consider cutting jobs. It also set the ambitious goal of increasing revenue by $16 million over the next four years via donations and increased enrollment.
University leaders this week said the Providence health system "provided substantial financial support" as it sought to establish a viable long-term operating model. But the institution's efforts were ultimately unsuccessful.
Faculty members' last day will be determined by "program requirements and institutional needs" and more information, including on career transition services, is forthcoming, the university said.
"The decision to close is not a reflection of the quality of the University’s academic programs, faculty, staff, or students," it said. "Our responsibility now is to protect students and provide each student with the clearest possible path forward."
The University of Providence said it will continue to accept donations until it closes to help support students, including by reducing graduate tuition costs and offering scholarships to undergraduates taking classes over the summer.
It plans to use its $21 million endowment to the same effect. It will also reach out to donors "to discuss alternatives that honor the original intent and purpose of their gifts," the FAQ said.
The last days of classes will be August 20. Each student will receive an individualized academic plan, and accelerated graduation options may be available to those in a position to complete their degrees by the end of summer.
The Northwest Commission on Colleges and Universities, the university's accreditor, put it on probation in August and required its leaders to submit a teach-out plan by this month.
The University of Providence this week said it will soon share details about a teach-out plan that will ensure students' out-of-pocket expenses will not exceed what they would have been had the university stayed open.
Some 90 miles south, Carroll College on Tuesday offered transfer support services to University of Providence students. Jennifer Glowienka, president of the fellow Catholic institution, also mourned the university's pending closure.
