Dive Temporary:
- Union Institute & College’s accreditor just lately labeled it a financially distressed establishment, which got here as the school twice delayed the beginning of this yr’s fall time period over funding issues and fell below further federal authorities oversight.
- The Greater Studying Fee mentioned in a public assertion final week that whereas Union Institute stays accredited, HLC has critical considerations concerning the Ohio establishment’s potential to help its operations and meet the accreditor’s core requirements.
- HLC mentioned it can consider the personal college’s compliance with its insurance policies in October after which determine whether or not to take additional motion. A Union Institute spokesperson didn’t instantly reply to a request for remark Tuesday.
Dive Perception:
Union Institute leaders have insisted the college gained’t shut its doorways, regardless of myriad monetary issues which are normally the hallmarks previous a university closure.
Its enrollment has dropped from 1,666 college students in fall 2012 to 787 in fall 2022, in response to federal information. The ensuing decline in tuition income contributed to a multi-year funds deficit, tax paperwork present.
The personal nonprofit school has additionally missed its payroll a couple of occasions since a minimum of March, information reviews have documented. This led to an worker in April suing the college over the misplaced wages in a class-action lawsuit.
That’s on high of one other lawsuit filed final month that accuses the Union Institute of owing practically $450,000 in lease and defaulting on the lease at its headquarters.
All the monetary turmoil led the college to twice postpone its fall time period — initially scheduled for Aug. 28 — till mid-September, after which once more till November.
The U.S. Division of Schooling final month beefed up oversight of the college, sanctioning it with what’s often known as heightened money monitoring 2. This implies the Schooling Division gained’t give the establishment monetary assist upfront — the college should pay that itself after which search division reimbursement.
