Saint Michael’s College in Vermont is moving closer to financial crisis, accreditors said, in the latest liberal arts school in New England facing the pressure of declining enrollment numbers.
The New England Commission of Higher Education issued a notice to the small Catholic college in Colchester, Vt., last month, warning that the school could lose its accreditation if steps are not taken to solidify its finances.
“The commission found that the college is in danger of not meeting the commission’s Standard on Institutional Resources,” the accrediting agency said.
Saint Michael’s has seen enrollment fall by nearly a third over the past half-decade, from an undergraduate population of 1,539 in fall 2019 to 1,021 last year, the commission said.
Officials said the college’s unrestricted net assets were projected to fall to $9.8 million by the end of the fiscal year, adding that “little runway is left to fund the college’s future operating needs.”
Although the college has taken steps to reduce expenses, the cuts have been outpaced by declining revenues; Saint Michael’s weathered an operating deficit of $2.6 million in the 2025 fiscal year, the commission said.
The full cost of attendance, without financial aid, is currently $72,450.
Under the terms of the notice, accreditors will conduct a further evaluation of the college’s operations within the next two years. They will also review teach-out plans and academic record-keeping, in the case of the institution’s closure.
Richard Plumb, president of Saint Michael’s, said in the commission’s statement that school officials were “encouraged by the progress already underway.” The college just recorded its strongest fundraising year in more than a decade and is seeing increases in enrollment deposits and projected tuition for the fall semester.
The college has also shifted its academic offerings and adding a new emergency services major.
“The challenges facing higher education are real, and Saint Michael’s is responding with a clear strategy and disciplined execution,” Plumb said.
Other recent changes include consolidation of majors, including a combined philosophy and religious studies major and a global languages and cultures major, according to the school’s student newspaper.
A college spokesperson did not immediately return a request for comment on Thursday.
A number of liberal arts schools have experienced severe financial pressure due to declining enrollment, with some estimates showing more than one-quarter of private colleges and universities at risk of closing over the next decade. Recent high-profile closures in Massachusetts include Hampshire College and Anna Maria College, which both announced this spring that they would close their doors permanently.
The abrupt closures were a shock to many students and families. Hampshire had been under scrutiny by state regulators, under Massachusetts law for institutions at risk of folding within 18 months, but accreditors issued a notice to the school in March, less than a month before it announced it was shutting down.
Camilo Fonseca can be reached at camilo.fonseca@globe.com. Follow him on X @fonseca_esq and on Instagram @camilo_fonseca.reports.
