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 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 fund-raising 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.
Elizabeth Murray, a college spokesperson, said Thursday the accreditors’ notice “reflects real concerns, and we take those concerns seriously.”
But, she added, there has been progress. The college has increased its discounted tuition rates to “simplify the financial aid equation” and attract more students. Incoming class sizes over the past three years have been more stable. And the $2.6 million deficit reflects a deficit reduction of 80 percent over the past two years.
“NECHE has asked us to demonstrate that the steps we’re taking will restore the College’s long-term financial strength, and that work was already underway before the Notation was issued, not a response to it,” she said.
Murray said Saint Michael’s would submit a formal report to its accreditors in the fall.
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. Accreditors issued a final 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.
