Higher ed regulators are raising concerns over the future of St. Michael’s College, citing its declining enrollment and worsening finances.
In early June, the New England Commission of Higher Education, the region’s lead accreditor of colleges and universities, issued St. Mike’s a “notation” letter warning that the college’s accreditation could be in jeopardy based on its current trajectory.
The letter pointed to the college’s enrollment, which has dropped 37 percent — from 1,646 in 2018 to 1,021 in the fall of 2025 — over a seven-year period. Revenues have also been falling faster than it can cut expenses, the commission wrote. The college reported a $2.6 million loss in fiscal year 2025.
While the school has enough in reserves to cover the losses, it is on track to end FY26 with about $10 million in unrestricted net assets, leaving “little runway” to fund the college’s future operating needs, the commission wrote.
Schools that receive notations can be placed on a formal probation if they fail to address the commission’s concerns. St. Mike’s is one of four schools with an active notation, according to the commission’s website.
The college’s president, Richard Plumb, was not available for an interview on Wednesday. But in a statement provided by the college, Plumb said he was encouraged by a few recent developments. The college has had its strongest fundraising year in more than a decade and has seen an increase in student deposits, Plumb said, which has contributed to a projected growth in tuition revenue this fall.
He added that the college has been shifting its academic offerings to better meet the needs of the workforce, such as a new major for students interested in becoming emergency service providers.
“The challenges facing higher education are real, and Saint Michael’s is responding with a clear strategy and disciplined execution,” the statement read.
St. Mike’s has spent years trying to stave off financial crisis. It has sold property, cut faculty, rented dorms to other local colleges and doubled the amount it draws from its endowment, which stood at around $87 million as of last year. But its outlook has not improved. After cutting the St. Mike’s bond status to junk in 2022, ratings firm Moody’s lowered it yet again in April, citing the college’s outstanding debt of nearly $58 million.
A recent Wall Street Journal article highlighted the Colchester college as an example of the existential challenges facing small, liberal arts schools, particularly in New England. The Journal reported that roughly a quarter of the nation’s 1,700 private nonprofit colleges are at risk of closing or merging in the next decade, according to a leading adviser of college operations.
Correction, July 29, 2026: This post has been updated to correct financial information about the college.