Keystone College in ‘danger of imminent closure,’ accreditor says

Higher Ed Dive

Laura Spitalniak

May 3, 2024

Dive Brief:

• Keystone College, in Pennsylvania, has until Aug. 1 to prove compliance with accreditation standards — or risk losing access to federal student aid and potentially closing.

• The Middle States Commission on Higher Education last week issued the private nonprofit a show-cause order — a final warning before MSCHE could pull accreditation. Keystone will need to supply its accreditor with a multi-year budget and an independent audit “confirming financial viability,” among other requirements.

• The financially struggling college has already provided MSCHE with a requested teach-out plan, documentation which helps students finish their degree elsewhere in the event the institution closes. The college said it’s in negotiations with a potential “investment partner” after plans to be acquired by a nonprofit fell through.

Dive Insight:

Earlier this year, Keystone sought approval from MSCHE and the Pennsylvania Department of Education to be taken over by the Washington Institute for Education and Research, a nonprofit based in Washington, D.C.

The proposal would have made WIER the sole member of Keystone but left the college’s trustees in charge of academic and administrative affairs. However, the deal fell through shortly afterward.

In the aftermath, MSCHE posted a notice last week saying that Keystone is in “danger of imminent closure.”

“Unfortunately, it not only immediately weakened the College’s financial position, but also triggered heightened scrutiny from our accreditor,” President John Pullo said in a message to Keystone employees and students. He noted that the deal had aimed to bring new funding to the college to grow enrollment.

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