Dive Brief:
- Union Institute & University said this week that it will close June 30, following months of financial and legal troubles.
- The private nonprofit told the Higher Learning Commission earlier this month that it would surrender its accreditation with the agency, effective June 25, a near certain portent that closure was imminent.
- Union Institute has faced a tough year, including a lawsuit brought by its employees over unpaid wages, a $4.3 million fine from the U.S. Department of Education and a loss of access to federal financial aid.
Dive Insight:
The issues at Union Institute, a predominantly online institution with academic centers in Ohio, Florida and California, gained widespread attention early last year.
In April 2023, employees complained publicly that the university had not paid them in weeks, with one worker filing a class-action lawsuit. The university ultimately settled for $110,000 in March without admitting to wrongdoing, according to WVXU.
But during the year it took the lawsuit to conclude, Union Institute continued to struggle. The university delayed the start of its fall 2023 semester twice, citing funding problems. It ultimately scrapped fall classes altogether, according to the Cincinnati Enquirer
Its enrollment has also steadily declined over the past decade, dropping 52.8% from 1,666 students in fall 2012 to 787 in fall 2022. The institution focuses on adult learners and nontraditional students.
And in November, the Education Department accused the university of taking thousands of dollars in Title IV federal financial aid beyond what it was entitled to. The agency also said the university misused some funds for students to cover its expenses.
Those findings led to the $4.3 million fine and loss of Title IV funds. The Education Department said in December that Union Institute appealed the decision.
Although many colleges can’t operate without federal financial aid, the university maintained at the time that it would stay open.
Now, it is closing with less than two weeks’ notice, even as its website continues to list a new term starting Monday.
In a joint statement, President Karen Schuster Webb and Vice President of Academic Affairs Tom Frederick said the higher education landscape has changed significantly since Union Institute opened 60 years ago.
"The post pandemic world has changed higher education. Almost all universities now realize the potential of adult learners; almost all recognize the opportunities of distance learning," they wrote. "We leave knowing that we have made our mark on the higher education world."
All of Union Institute's students have been placed at partner colleges, Frederick said Thursday. The university established teach-out agreements with two institutions — Antioch University, in Ohio, and Lasell University, in Massachusetts.
Those two institutions have agreed to honor students’ current tuition rates and their credits earned at Union, according to the announcement.
