Following the unexpected closures of two private colleges late in the last academic year, state higher education officials in Massachusetts are moving to implement earlier reporting requirements for institutions facing financial instability. The Department of Higher Education plans to require private colleges and universities to publicly disclose by December 31 if they are at risk of imminent closure, a significant change from the current timeline.
Noe Ortega, commissioner of the Department of Higher Education, outlined the proposed deadline during a Board of Higher Education meeting on Tuesday, which was his final before José Luis Santos assumes the role of interim commissioner on Thursday. Ortega explained that the earlier notification period is intended to provide better support for students at institutions that may shut down, especially since many students finalize their academic and transfer plans during the spring semester.
The move builds on a 2019 state law enacted after Mount Ida College closed abruptly in 2018. The law requires colleges and universities to notify the Board of Higher Education immediately if they experience financial problems that could cause them to close or prevent them from meeting obligations to current or admitted students. Additionally, the board must conduct annual assessments of each institution’s financial health and inform those considered potentially at risk of imminent closure. At-risk institutions must then submit a risk mitigation plan for review.
If, after reviewing the submitted plan, the department still judges that the institution faces a substantial risk of closure within the current and subsequent academic years, it must publicly post a closure risk notice and develop further contingency planning.
Currently, the board’s regulations designate December 1 as the “annual threshold measurement date” to determine an institution’s risk status for closure or failure to meet obligations. However, according to Board Chair Chris Gabrieli, this timing leaves a significant portion of the academic year during which students, staff, and communities remain uncertain about their institution’s viability. Gabrieli emphasized that advancing the determination deadline to December 31 aims to reduce risks for stakeholders during the latter half of the academic year.
The proposed shift seeks to provide clearer, earlier warnings about potential college closures, enabling students and faculty to make informed decisions and minimizing disruption caused by sudden institutional shutdowns. The Department of Higher Education is expected to formalize these updated reporting requirements in the near future.