University of the Arts suddenly closed amidst financial woes

PHILADELPHIA: The University of the Arts in Philadelphia, United States (US) announced its abrupt closure following the withdrawal of its accreditation by the Middle States Commission on Higher Education on Saturday.

The university’s President and board of trustees chairperson announced the decision that they say comes amidst financial struggles and declining enrollment.

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The university is nearly 150 years old.

The sudden closure has left both current and prospective students angry and shocked, as uncertainty looms regarding their academic futures. Students who were set to join the university after having received their acceptance letters fear for their academic future and loss of an entire year. They are also reeling from financial setbacks as most have already deposited their fees.

The university’s administration admitted that the academic institution was facing stringent financial issues. However, they have yet to address the issues enrolled students are now facing.

The university admin said they tried and made “concerted efforts” to address the financial issues, including discussions with stakeholders.

The faculty is similarly worried as over 700 staff members face imminent lay-offs. They worry about an uncertain future, facing the prospect of unemployment and looming debt, along with insurance payments.

The University of the Arts has opted to hold a meeting with students and faculty on Monday to address any issues and concerns. The administration is also mulling alternative options, including potential placements for enrolled students. Some universities under consideration include Drexel University and Moore College of Art and Design.

Financial difficulties have led to the closure of several private universities in the United States in the past.

In March, Birmingham-Southern College, a private college in state of Alabama, announced its closure after nearly two centuries since its establishment, citing financial issues.

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The college struggled to secure a $30 million loan from the state government and faced challenges exacerbated by declining enrollment and economic hardships, including those induced by the Covid-19 pandemic.

Efforts to obtain financial aid from the state were unsuccessful, with lawmakers and the public expressing disapproval of using public funds for a private institution.