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Huddled around a table in the Georgetown University Alumni House, roughly two dozen academics convened last week to address two of the most persistent challenges in higher education: improving student outcomes and lowering the cost of a bachelor’s degree. Their proposed solution is an unconventional one—to create a three-year bachelor’s program equivalent to a four-year college degree.
Unlike the other three-year options that exist on the market, their proposal isn’t focused on accelerating bachelor’s degree programs but rather redesigning them to fit within three years. That means cutting off chunks of credits and building a tightly packaged curriculum with all the essentials. While the standard bachelor’s program is 120 credit hours, their proposals require 90 to 100 credits.
“The four-year degree isn’t working for a lot of people,” Lori Carrell, the chancellor of the University of Minnesota at Rochester, told her colleagues around the table, noting higher education’s high cost and low degree attainment, which has “squandered human potential at times.”
Carrell was flanked by Robert Zemsky, an elder statesman of higher education, author and longtime professor at the University of Pennsylvania, which has named a medal for innovation in his honor. Zemsky, who has long pursued the idea of a three-year degree, held court at Georgetown alongside Carrell with representatives from a dozen colleges in attendance.
“There is plenty of time in three years to do almost anything you want to do,” Zemsky told the group’s members, all of whom are working on three-year-degree pilot programs at their institutions.
For Zemsky, the idea has been in motion for well over a decade. In 2009, Newsweek featured him in a cover story that explored the idea of a three-year bachelor’s degree. Zemsky argued at the time that a college degree could be “compressed” and simplified. But the idea never took off, Zemsky believes, because accreditors were resistant to a three-year degree.
Now, nearly 15 years later, the idea has fresh momentum. A dozen colleges are pursuing pilot programs, and accreditors are increasingly willing to consider them.
Leveraging their combined connections, Zemsky and Carrell found partners willing to explore the three-year bachelor’s degree and commit to building pilot programs to that end.
The institutions with pilot programs are the American Public University system, Brigham Young University Idaho, Indiana University of Pennsylvania, Georgetown University, Merrimack College, New England College, Northwood University, Portland State University, the University of Minnesota at Morris, the University of Minnesota at Rochester, the University of Wisconsin at Oshkosh and Utica University. Together they represent a diverse mix of public and private colleges ranging in geography, demographics and program ambitions.
All 12 pilot programs are in different stages of progress. Some institutions, like Georgetown, are only beginning to explore the idea. Others, like Merrimack College and BYU Idaho, have developed ready-to-launch proposals that they hope their respective accreditors will approve. And other institutions have dropped out along the way, shrinking the pilot pool from 14 to 12.
Zemsky and Carrell did not provide a template for a three-year degree, tasking the participants involved with developing their own programs. Zemsky compared it to a box of Lego bricks, noting that colleges can build what they want, “but you have to put it together in a way that makes sense.”
The colleges involved are exploring different pathways to the idea. Officials at Merrimack College note that the challenges of the coronavirus pandemic prompted faculty members to consider new approaches, which opened the door to pursuing a three-year degree program.
“What attracted us to this was an invitation to try to build something new. And this came in the summer of 2021, so we had gone through a very challenging year where a lot of faculty had been forced to do things that they never would have imagined doing if it hadn’t been for the pandemic,” said Sean Condon, provost and senior vice president of academic affairs at Merrimack College.
Indiana University of Pennsylvania decided to explore three-year degrees for an entirely different reason: the loss of faculty members to retrenchments and retirements, said Lori Lombard, a professor and chair of the Department of Communication Disorders, Special Education and Disability Services. Those losses led her to rethink the program’s curriculum.
“We slimmed down our curriculum to what we thought were essentials,” Lombard said, noting that the proposal for her department includes “courses in our curriculum from social sciences and theater” to provide a holistic, multidisciplinary experience packaged in a three-year format. “We took credits away from ourselves and added credits from other disciplines,” Lombard said.
Some institutions suggest cutting electives. The American Public University system, which enrolls a large population of adult learners, is proposing a 90-credit-hour bachelor’s of science in cybersecurity that would eliminate 30 hours of electives while retaining general education courses.
At BYU Idaho, which also enrolls a high number of adult learners, the focus is on building a “nested certificate structure,” according to a summary of the plan, which would offer three certificates plus general education courses that would add up to a total of 90 credit hours for a bachelor’s degree. As with APU, electives would be axed to shorten the degree program.
Neither institution has made a formal proposal to its respective accreditor yet.
But some colleges have taken their plans for a three-year degree to their accrediting body. In March, New England College proposed a 100-credit bachelor’s degree in criminal justice to the New England Commission of Higher Education, which requires 120 credit hours for a bachelor’s degree but may consider exceptions as part of its Policy on Innovation. Ultimately, however, NECHE denied New England College’s request on the grounds that “graduates of 100-credit baccalaureate programs would not receive equivalent benefit” to those pursuing a 120-credit degree, according to a summary of the proposal shared with Inside Higher Ed.
New England College may bring a revised proposal to NECHE in the future, the summary notes.
Though NECHE dealt a blow to the three-year bachelor’s degree—and has yet to approve a single such program—the commission remains open to the idea.
“The requests before the Commission under its Policy on Innovation to award a baccalaureate degree with fewer than 120 hours has been and will continue to be given extensive and serious attention by the Commission. We applaud all our institutions for their innovative thinking and practices in service to their students,” NECHE president Larry Schall said by email.
The Southern Association of Colleges and Schools Commission on Colleges has a similar 120-credit hour requirement, though none of the institutions in the pilot programs are accredited through SACSCOC. But if a college were to pursue such an idea, SACSCOC would consider it.
President Belle Whelan said by email that SACSCOC “would consider approving a three-year degree” depending “on the justification provided” and what might be excluded from the program.
The Higher Learning Commission also told Inside Higher Ed that it would be willing to consider a three-year degree, though colleges would need to provide a justification.
Some accreditors, such as the WASC Senior College and University Commission and the Northwest Commission on Colleges and Universities, do not have minimum credit policies, meaning there are fewer obstacles for a three-year, 90-credit degree.
“When I’ve spoken to Robert Zemsky and Lori Carrell about this initiative, I have emphasized that the exciting opportunity is not to essentially repack the same pieces into a smaller suitcase, but to fundamentally rethink the capacities and coherence we expect of the bachelor’s degree,” Jamienne Studley, president of WSCUC, wrote in an email to Inside Higher Ed. “As an accreditor WSCUC would consider it our responsibility, even privilege, to work with institutions to evaluate whether their reconceived program met our standards for quality and student success.”
Sonny Ramaswamy, president of NWCCU, said that while his organization has not received a proposal from BYU Idaho yet, he expects it will soon. In considering a three-year bachelor’s degree, he said it’s vital that students “demonstrate the same learning outcomes as a student getting a four-year degree.” He added that the conversations he’s had around the possibility of launching a three-year degree have been “exciting” and that NWCCU looks forward to receiving the proposal.
But even if accreditors are willing to sign off on a three-year degree, state lawmakers also have to be convinced. Some states, including California and Pennsylvania, have laws requiring a minimum of 120 credit hours for a bachelor’s degree, which would require changes to open the door to a three-year degree and a reduced load culminating in a baccalaureate.
Beyond accreditation and state law, there’s also the matter of how tradition has shaped the bachelor’s degree in a sector that is notoriously slow to change, even as employers and students demand more from colleges.
“The 120-hour degree is codified by tradition. That’s all it is. It’s really not even based on strong learning science—it’s just been adopted, like many things in this country, and codified. And it’s now created a wonderful amount of chaos,” said Merrimack College president Chris Hopey.
He also compared conversations around three-year bachelor’s degrees to discussions about online education 20 years ago. And just as those who were slow to adapt to online programs are playing catch up, so too will those who resist three-year degree programs, he said, suggesting a lack of imagination for the higher education community even as the status quo remains mired in degree-completion challenges and ever-climbing costs. Though he said it may take 10 to 15 years for the three-year-degree idea to become popular, many colleges will not survive over that timeline.
Zemsky, however, stressed that “weak institutions cannot do this,” noting that the pilot colleges leading the charge are spending their own money without funding from major national sponsors. He discouraged colleges from looking at the three-year degree as their financial salvation, arguing instead that it is simply another option that colleges can offer to consumers to reduce costs. The idea also comes with financial questions, given the loss of a fourth year of tuition, though Zemsky suggests a dip in tuition revenue may be countered by increased enrollment in such programs.
So far, Zemsky and Carrell have been unable to attract major foundation support, which he said is needed for coordinating functions, not program development, since colleges have been spending their own money to advance pilot programs.
“Lori and I have carried this as far as we can,” Zemsky said. “What we need for this to work is a paid-for infrastructure. And the only game in town to do that, I fear, is a foundation.”
Another potential obstacle to the three-year bachelor’s degree is perception. While participants note student feedback has been enthusiastic, questions linger about transfer pathways given the tight focus of the programs as well as how three-year degrees might be viewed by graduate programs. Though those questions are yet to be answered, Boyd Baggett, director of institutional effectiveness and accreditation at BYU Idaho, said he’s had promising conversations with officials in a dozen graduate programs who said they would recognize a three-year degree.
Lynn Pasquerella, president of the Association of American Colleges & Universities, expressed cautious optimism about the idea, noting the importance of innovation and exploring new models amid national concerns about the value of higher education while also raising concerns about what might be lost as institutions trim credits, particularly electives.
“The first thing that comes to mind is if it’s a proposal to reduce, does that mean a reduction in general education or the liberal arts and sciences at a time when that type of education is more critical than ever for addressing the wicked problems and grand challenges of which COVID-19 was emblematic?” Pasquerella said. “I also think about our employer surveys, where employers consistently make clear their desire that students have more than narrow disciplinary training, and broad training in the liberal arts and sciences that allows them to integrate what they’ve learned in different disciplines to address the unscripted problems of the future.”
As the Georgetown sessions—sponsored by Strada Education Foundation—drew to a close, Zemsky laid out the needs and ambitions for the three-year bachelor’s degree proposal. Though a dozen institutions are already pursuing the idea, he hopes that 500 will be on board within the next five years. Carrell has also discussed the idea with lawmakers to garner support and said she is hearing bipartisan interest. A book promoting the idea of the three-year bachelor’s degree is also in the works, likely to be published next year.
Now Zemsky and Carrell are trying not to lose the momentum around the idea, which they see not as replacing the four-year degree but rather providing consumers with another option.
Though the proposal had excitement in 2009 that faded away, Zemsky remains undeterred.
In 2020, before the three-year bachelor’s degree advanced to the stage of pilot programs, Zemsky told this reporter he was just “throwing pebbles into the pond. And there are some ripples.” Now, with 12 institutions pursuing pilot programs and accreditors willing to consider a three-year bachelor’s degree, it seems the idea is making waves.
Following months of closure talks related to ongoing financial issues, the Board of Trustees at Birmingham-Southern College voted unanimously Wednesday to remain open, AL.com reported.
The private Alabama college has made appeals to state and local authorities in recent months, requesting a $37.5 million lifeline, which lawmakers have not delivered, despite concerns of closure. Birmingham-Southern has also launched an effort to raise $200 million by May 2026.
The meeting on Birmingham-Southern’s fate lasted more than eight hours, according to AL.com.
Though lawmakers have suggested a public bailout for the private college is unlikely, a statement from BSC Board of Trustees chairman Reverend Keith D. Thompson indicated otherwise. He noted in a news release after the vote that the board had “made the informed and thoughtful decision to keep Birmingham-Southern open” and that the college has “been working closely with our allies in state and local government to secure bridge funding.”
BSC’s financial crisis dates back more than a decade. In 2010 it was discovered that errors in administering financial aid cost the college millions of dollars, which then prompted layoffs. The college has also struggled in other areas in the past, including significant leadership turnover. Birmingham-Southern has also struggled with falling enrollment in recent years.
Huddled around a table in the Georgetown University Alumni House, roughly two dozen academics convened last week to address two of the most persistent challenges in higher education: improving student outcomes and lowering the cost of a bachelor’s degree. Their proposed solution is an unconventional one—to create a three-year bachelor’s program equivalent to a four-year college degree.
Unlike the other three-year options that exist on the market, their proposal isn’t focused on accelerating bachelor’s degree programs but rather redesigning them to fit within three years. That means cutting off chunks of credits and building a tightly packaged curriculum with all the essentials. While the standard bachelor’s program is 120 credit hours, their proposals require 90 to 100 credits.
“The four-year degree isn’t working for a lot of people,” Lori Carrell, the chancellor of the University of Minnesota at Rochester, told her colleagues around the table, noting higher education’s high cost and low degree attainment, which has “squandered human potential at times.”
Carrell was flanked by Robert Zemsky, an elder statesman of higher education, author and longtime professor at the University of Pennsylvania, which has named a medal for innovation in his honor. Zemsky, who has long pursued the idea of a three-year degree, held court at Georgetown alongside Carrell with representatives from a dozen colleges in attendance.
“There is plenty of time in three years to do almost anything you want to do,” Zemsky told the group’s members, all of whom are working on three-year-degree pilot programs at their institutions.
For Zemsky, the idea has been in motion for well over a decade. In 2009, Newsweek featured him in a cover story that explored the idea of a three-year bachelor’s degree. Zemsky argued at the time that a college degree could be “compressed” and simplified. But the idea never took off, Zemsky believes, because accreditors were resistant to a three-year degree.
Now, nearly 15 years later, the idea has fresh momentum. A dozen colleges are pursuing pilot programs, and accreditors are increasingly willing to consider them.
Leveraging their combined connections, Zemsky and Carrell found partners willing to explore the three-year bachelor’s degree and commit to building pilot programs to that end.
The institutions with pilot programs are the American Public University system, Brigham Young University Idaho, Indiana University of Pennsylvania, Georgetown University, Merrimack College, New England College, Northwood University, Portland State University, the University of Minnesota at Morris, the University of Minnesota at Rochester, the University of Wisconsin at Oshkosh and Utica University. Together they represent a diverse mix of public and private colleges ranging in geography, demographics and program ambitions.
All 12 pilot programs are in different stages of progress. Some institutions, like Georgetown, are only beginning to explore the idea. Others, like Merrimack College and BYU Idaho, have developed ready-to-launch proposals that they hope their respective accreditors will approve. And other institutions have dropped out along the way, shrinking the pilot pool from 14 to 12.
Zemsky and Carrell did not provide a template for a three-year degree, tasking the participants involved with developing their own programs. Zemsky compared it to a box of Lego bricks, noting that colleges can build what they want, “but you have to put it together in a way that makes sense.”
The colleges involved are exploring different pathways to the idea. Officials at Merrimack College note that the challenges of the coronavirus pandemic prompted faculty members to consider new approaches, which opened the door to pursuing a three-year degree program.
“What attracted us to this was an invitation to try to build something new. And this came in the summer of 2021, so we had gone through a very challenging year where a lot of faculty had been forced to do things that they never would have imagined doing if it hadn’t been for the pandemic,” said Sean Condon, provost and senior vice president of academic affairs at Merrimack College.
Indiana University of Pennsylvania decided to explore three-year degrees for an entirely different reason: the loss of faculty members to retrenchments and retirements, said Lori Lombard, a professor and chair of the Department of Communication Disorders, Special Education and Disability Services. Those losses led her to rethink the program’s curriculum.
“We slimmed down our curriculum to what we thought were essentials,” Lombard said, noting that the proposal for her department includes “courses in our curriculum from social sciences and theater” to provide a holistic, multidisciplinary experience packaged in a three-year format. “We took credits away from ourselves and added credits from other disciplines,” Lombard said.
Some institutions suggest cutting electives. The American Public University system, which enrolls a large population of adult learners, is proposing a 90-credit-hour bachelor’s of science in cybersecurity that would eliminate 30 hours of electives while retaining general education courses.
At BYU Idaho, which also enrolls a high number of adult learners, the focus is on building a “nested certificate structure,” according to a summary of the plan, which would offer three certificates plus general education courses that would add up to a total of 90 credit hours for a bachelor’s degree. As with APU, electives would be axed to shorten the degree program.
Neither institution has made a formal proposal to its respective accreditor yet.
But some colleges have taken their plans for a three-year degree to their accrediting body. In March, New England College proposed a 100-credit bachelor’s degree in criminal justice to the New England Commission of Higher Education, which requires 120 credit hours for a bachelor’s degree but may consider exceptions as part of its Policy on Innovation. Ultimately, however, NECHE denied New England College’s request on the grounds that “graduates of 100-credit baccalaureate programs would not receive equivalent benefit” to those pursuing a 120-credit degree, according to a summary of the proposal shared with Inside Higher Ed.
New England College may bring a revised proposal to NECHE in the future, the summary notes.
Though NECHE dealt a blow to the three-year bachelor’s degree—and has yet to approve a single such program—the commission remains open to the idea.
“The requests before the Commission under its Policy on Innovation to award a baccalaureate degree with fewer than 120 hours has been and will continue to be given extensive and serious attention by the Commission. We applaud all our institutions for their innovative thinking and practices in service to their students,” NECHE president Larry Schall said by email.
The Southern Association of Colleges and Schools Commission on Colleges has a similar 120-credit hour requirement, though none of the institutions in the pilot programs are accredited through SACSCOC. But if a college were to pursue such an idea, SACSCOC would consider it.
President Belle Whelan said by email that SACSCOC “would consider approving a three-year degree” depending “on the justification provided” and what might be excluded from the program.
The Higher Learning Commission also told Inside Higher Ed that it would be willing to consider a three-year degree, though colleges would need to provide a justification.
Some accreditors, such as the WASC Senior College and University Commission and the Northwest Commission on Colleges and Universities, do not have minimum credit policies, meaning there are fewer obstacles for a three-year, 90-credit degree.
“When I’ve spoken to Robert Zemsky and Lori Carrell about this initiative, I have emphasized that the exciting opportunity is not to essentially repack the same pieces into a smaller suitcase, but to fundamentally rethink the capacities and coherence we expect of the bachelor’s degree,” Jamienne Studley, president of WSCUC, wrote in an email to Inside Higher Ed. “As an accreditor WSCUC would consider it our responsibility, even privilege, to work with institutions to evaluate whether their reconceived program met our standards for quality and student success.”
Sonny Ramaswamy, president of NWCCU, said that while his organization has not received a proposal from BYU Idaho yet, he expects it will soon. In considering a three-year bachelor’s degree, he said it’s vital that students “demonstrate the same learning outcomes as a student getting a four-year degree.” He added that the conversations he’s had around the possibility of launching a three-year degree have been “exciting” and that NWCCU looks forward to receiving the proposal.
But even if accreditors are willing to sign off on a three-year degree, state lawmakers also have to be convinced. Some states, including California and Pennsylvania, have laws requiring a minimum of 120 credit hours for a bachelor’s degree, which would require changes to open the door to a three-year degree and a reduced load culminating in a baccalaureate.
Beyond accreditation and state law, there’s also the matter of how tradition has shaped the bachelor’s degree in a sector that is notoriously slow to change, even as employers and students demand more from colleges.
“The 120-hour degree is codified by tradition. That’s all it is. It’s really not even based on strong learning science—it’s just been adopted, like many things in this country, and codified. And it’s now created a wonderful amount of chaos,” said Merrimack College president Chris Hopey.
He also compared conversations around three-year bachelor’s degrees to discussions about online education 20 years ago. And just as those who were slow to adapt to online programs are playing catch up, so too will those who resist three-year degree programs, he said, suggesting a lack of imagination for the higher education community even as the status quo remains mired in degree-completion challenges and ever-climbing costs. Though he said it may take 10 to 15 years for the three-year-degree idea to become popular, many colleges will not survive over that timeline.
Zemsky, however, stressed that “weak institutions cannot do this,” noting that the pilot colleges leading the charge are spending their own money without funding from major national sponsors. He discouraged colleges from looking at the three-year degree as their financial salvation, arguing instead that it is simply another option that colleges can offer to consumers to reduce costs. The idea also comes with financial questions, given the loss of a fourth year of tuition, though Zemsky suggests a dip in tuition revenue may be countered by increased enrollment in such programs.
So far, Zemsky and Carrell have been unable to attract major foundation support, which he said is needed for coordinating functions, not program development, since colleges have been spending their own money to advance pilot programs.
“Lori and I have carried this as far as we can,” Zemsky said. “What we need for this to work is a paid-for infrastructure. And the only game in town to do that, I fear, is a foundation.”
Another potential obstacle to the three-year bachelor’s degree is perception. While participants note student feedback has been enthusiastic, questions linger about transfer pathways given the tight focus of the programs as well as how three-year degrees might be viewed by graduate programs. Though those questions are yet to be answered, Boyd Baggett, director of institutional effectiveness and accreditation at BYU Idaho, said he’s had promising conversations with officials in a dozen graduate programs who said they would recognize a three-year degree.
Lynn Pasquerella, president of the Association of American Colleges & Universities, expressed cautious optimism about the idea, noting the importance of innovation and exploring new models amid national concerns about the value of higher education while also raising concerns about what might be lost as institutions trim credits, particularly electives.
“The first thing that comes to mind is if it’s a proposal to reduce, does that mean a reduction in general education or the liberal arts and sciences at a time when that type of education is more critical than ever for addressing the wicked problems and grand challenges of which COVID-19 was emblematic?” Pasquerella said. “I also think about our employer surveys, where employers consistently make clear their desire that students have more than narrow disciplinary training, and broad training in the liberal arts and sciences that allows them to integrate what they’ve learned in different disciplines to address the unscripted problems of the future.”
As the Georgetown sessions—sponsored by Strada Education Foundation—drew to a close, Zemsky laid out the needs and ambitions for the three-year bachelor’s degree proposal. Though a dozen institutions are already pursuing the idea, he hopes that 500 will be on board within the next five years. Carrell has also discussed the idea with lawmakers to garner support and said she is hearing bipartisan interest. A book promoting the idea of the three-year bachelor’s degree is also in the works, likely to be published next year.
Now Zemsky and Carrell are trying not to lose the momentum around the idea, which they see not as replacing the four-year degree but rather providing consumers with another option.
Though the proposal had excitement in 2009 that faded away, Zemsky remains undeterred.
In 2020, before the three-year bachelor’s degree advanced to the stage of pilot programs, Zemsky told this reporter he was just “throwing pebbles into the pond. And there are some ripples.” Now, with 12 institutions pursuing pilot programs and accreditors willing to consider a three-year bachelor’s degree, it seems the idea is making waves.
Following months of closure talks related to ongoing financial issues, the Board of Trustees at Birmingham-Southern College voted unanimously Wednesday to remain open, AL.com reported.
The private Alabama college has made appeals to state and local authorities in recent months, requesting a $37.5 million lifeline, which lawmakers have not delivered, despite concerns of closure. Birmingham-Southern has also launched an effort to raise $200 million by May 2026.
The meeting on Birmingham-Southern’s fate lasted more than eight hours, according to AL.com.
Though lawmakers have suggested a public bailout for the private college is unlikely, a statement from BSC Board of Trustees chairman Reverend Keith D. Thompson indicated otherwise. He noted in a news release after the vote that the board had “made the informed and thoughtful decision to keep Birmingham-Southern open” and that the college has “been working closely with our allies in state and local government to secure bridge funding.”
BSC’s financial crisis dates back more than a decade. In 2010 it was discovered that errors in administering financial aid cost the college millions of dollars, which then prompted layoffs. The college has also struggled in other areas in the past, including significant leadership turnover. Birmingham-Southern has also struggled with falling enrollment in recent years.
The Faculty Senate at Florida International University narrowly voted no confidence in chairwoman Deanne Butchey on Tuesday due to what members argue is a failure to push back on sweeping higher education reforms driven by Republican governor Ron DeSantis.
The vote of no confidence passed 30 to 28, The Miami Herald reported.
Faculty members who backed the measure suggested that Butchey needs to take a more aggressive approach to proposed reforms that would defund diversity, equity and inclusion efforts at state institutions; concentrate hiring power in the hands of trustees; limit institutional autonomy; eliminate majors in certain subjects focused on race and gender; and undermine tenure protections. The proposed reforms are currently advancing in the Florida Legislature.
FIU has put forth four resolutions this year taking aim at various concerns related to higher education in Florida, but faculty members believe Butchey has not adequately promoted those resolutions to FIU’s Board of Trustees. Butchey has denied that charge, arguing that she has taken a more diplomatic approach focused on private rather than public advocacy.
“I cannot demand; I have to be very respectful,” Butchey said, according to the Herald. “I’m taking calculated risks. I don’t think many understand that my way of working is catching more flies with honey.”
Butchey’s appointment as Faculty Senate chair runs through June.
The no-confidence vote comes as many university leaders in the state remain silent on the DeSantis-backed reforms. Of the 40 presidents of Florida’s public colleges and universities, none agreed to discuss the reforms with Inside Higher Ed in recent weeks, even when offered anonymity.
Houston Christian University filed a lawsuit earlier this month against the American Association of Christian Counselors and its president, Tim Clinton, alleging fraud, breach of contract and a cover-up of Clinton’s alleged plagiarism, according to the independent news site The Roys Report.
HCU, a private Baptist university, hired Clinton and AACC—a large Christian counseling service—for $5 million in 2016 to help drive enrollment and develop courses for its counseling program. Clinton was also contracted to help launch and promote a mental health center at HCU.
Now the university is seeking $1 million from Clinton and AACC, alleging that the defendants did not deliver on “the expressed scope of the contracts.” HCU claims in the lawsuit that AACC outsourced course development to a third party instead of conducting it itself, and that it delivered only one new student—far short of the 133 that had been promised.
Clinton has been accused of multiple instances of plagiarism, including lifting the work of legendary boxer and entrepreneur George Foreman, which HCU claims was not revealed. Given the importance of academic honesty, HCU argues the plagiarism should have been made clear. The allegations caused HCU to rethink naming a health center after Clinton.
AACC has filed a counterclaim, alleging it “performed all of its obligations under the agreement” and that HCU breached deals with Clinton and AACC, failing to fully compensate both parties.
In addition to his role at AACC, Clinton is also the executive director of the Liberty University Global Center for Mental Health Addiction & Recovery. The Roys Report notes that Clinton joined Liberty in 2021 while under contract for an “exclusive license and services agreement” with HCU.
Connecticut College president Katherine Bergeron is stepping down in the wake of student protests and widespread calls for her resignation over missteps on diversity, equity and inclusion.
Bergeron made the announcement Friday morning, writing in a statement that she would formally step down "at the end of the current semester.” Students, faculty and staff have called for Bergeron’s ouster for weeks; students occupied the administrative building last month after Rodmon King, the dean of institutional equity and inclusion, resigned after objecting to the college’s decision to hold a fundraiser at Florida’s Everglades Club, which has long been accused of discriminating against Black and Jewish people.
In his resignation letter, King blasted the president for bullying and creating a “toxic administrative culture of fear and intimidation.”
Bergeron did not address the specifics of the controversy in her resignation announcement.
“Certainly, the road has not always been easy. It never is, when the work is so important and the goals so ambitious. The past several weeks have proven particularly challenging, and as president, I fully accept my share of responsibility for the circumstances that have led us to this moment,” she wrote in an emailed statement to the campus community Friday morning. “For the past nine and a half years, I have devoted myself to advancing educational excellence and equity at this College. I care deeply—and I always have—for the success of our faculty, the well-being of our staff, and above all, the intellectual, social, and professional development of our students. My decision to leave at this moment is for the good of all these things.”
Bergeron continued, “For my part, I have thought hard about the events of the past weeks, and I know I will continue to learn from them. I hope it is possible for everyone to do the same, for there are many lessons here. It is only through careful, honest discernment that a community can grow towards peace, wisdom, and justice. That is my wish for Conn.”
The Connecticut College Board of Trustees also issued a statement Friday, praising Bergeron’s work over nearly a decade at the institution and pointing to her track record in curriculum development, strategic planning, fundraising and establishing the Division of Institutional Equity and Inclusion, whose dean ultimately played a role in ending her presidency.
“Over the last several weeks our focus has been drawn to areas in which the College can better execute its mission, including the area of equity, inclusion, and full participation. Constructive dialogue among students, staff, faculty administrators, and trustees has already begun to clarify an approach to the next phase of work we need to do to improve the Conn College experience for everyone,” board chair Debo P. Adegbile wrote in a statement sent to the campus community Friday. “The Board remains committed to providing additional resources to advance campus DIEI work, and to assess ways to support the community more broadly as plans come into sharper focus. Our College is at its finest, after all, when students, staff, faculty, administrators, and trustees work together to deliver an exceptional educational experience for all.”
Connecticut College president Katherine Bergeron is stepping down in the wake of student protests and widespread calls for her resignation over missteps on diversity, equity and inclusion.
Bergeron made the announcement Friday morning, writing in a statement that she would formally step down "at the end of the current semester.” Students, faculty and staff have called for Bergeron’s ouster for weeks; students occupied the administrative building last month after Rodmon King, the dean of institutional equity and inclusion, resigned after objecting to the college’s decision to hold a fundraiser at Florida’s Everglades Club, which has long been accused of discriminating against Black and Jewish people.
In his resignation letter, King blasted the president for bullying and creating a “toxic administrative culture of fear and intimidation.”
Bergeron did not address the specifics of the controversy in her resignation announcement.
“Certainly, the road has not always been easy. It never is, when the work is so important and the goals so ambitious. The past several weeks have proven particularly challenging, and as president, I fully accept my share of responsibility for the circumstances that have led us to this moment,” she wrote in an emailed statement to the campus community Friday morning. “For the past nine and a half years, I have devoted myself to advancing educational excellence and equity at this College. I care deeply—and I always have—for the success of our faculty, the well-being of our staff, and above all, the intellectual, social, and professional development of our students. My decision to leave at this moment is for the good of all these things.”
Bergeron continued, “For my part, I have thought hard about the events of the past weeks, and I know I will continue to learn from them. I hope it is possible for everyone to do the same, for there are many lessons here. It is only through careful, honest discernment that a community can grow towards peace, wisdom, and justice. That is my wish for Conn.”
The Connecticut College Board of Trustees also issued a statement Friday, praising Bergeron’s work over nearly a decade at the institution and pointing to her track record in curriculum development, strategic planning, fundraising and establishing the Division of Institutional Equity and Inclusion, whose dean ultimately played a role in ending her presidency.
“Over the last several weeks our focus has been drawn to areas in which the College can better execute its mission, including the area of equity, inclusion, and full participation. Constructive dialogue among students, staff, faculty administrators, and trustees has already begun to clarify an approach to the next phase of work we need to do to improve the Conn College experience for everyone,” board chair Debo P. Adegbile wrote in a statement sent to the campus community Friday. “The Board remains committed to providing additional resources to advance campus DIEI work, and to assess ways to support the community more broadly as plans come into sharper focus. Our College is at its finest, after all, when students, staff, faculty, administrators, and trustees work together to deliver an exceptional educational experience for all.”
Millikin University in Illinois is poised to lay off 15 employees and reduce a number of unspecified vacant positions, citing “the effects of the [coronavirus] pandemic, coupled with increased expenses, and changing demographics,” according to WAND-TV.
“The majority of the reductions will be made through a combination of open vacancies and retirements, and one-year contracts that will not be renewed. Fifteen layoffs are included, with several of those being part-time or reduced hours. All tenured and tenure-track faculty members laid-off will receive 10-month terminal contracts, and those affected by administrative and staff reductions will receive a 90-day notice to assist in planning and seeking alternative employment,” read part of a university statement to WAND-TV.
Employees affected by the layoffs will reportedly be informed by the end of this month.
Houston Christian University filed a lawsuit earlier this month against the American Association of Christian Counselors and its president, Tim Clinton, alleging fraud, breach of contract and a cover-up of Clinton’s alleged plagiarism, according to the independent news site The Roys Report.
HCU, a private Baptist university, hired Clinton and AACC—a large Christian counseling service—for $5 million in 2016 to help drive enrollment and develop courses for its counseling program. Clinton was also contracted to help launch and promote a mental health center at HCU.
Now the university is seeking $1 million from Clinton and AACC, alleging that the defendants did not deliver on “the expressed scope of the contracts.” HCU claims in the lawsuit that AACC outsourced course development to a third party instead of conducting it itself, and that it delivered only one new student—far short of the 133 that had been promised.
Clinton has been accused of multiple instances of plagiarism, including lifting the work of legendary boxer and entrepreneur George Foreman, which HCU claims was not revealed. Given the importance of academic honesty, HCU argues the plagiarism should have been made clear. The allegations caused HCU to rethink naming a health center after Clinton.
AACC has filed a counterclaim, alleging it “performed all of its obligations under the agreement” and that HCU breached deals with Clinton and AACC, failing to fully compensate both parties.
In addition to his role at AACC, Clinton is also the executive director of the Liberty University Global Center for Mental Health Addiction & Recovery. The Roys Report notes that Clinton joined Liberty in 2021 while under contract for an “exclusive license and services agreement” with HCU.
Birgit Puschner, dean of Michigan State University’s College of Veterinary Medicine, announced her resignation Monday, effective March 31, citing institutional failures in sexual misconduct investigations and a lack of accountability for alleged perpetrators, according to The Detroit News.
“After years of all-consuming work, I came to the conclusion that I cannot, in good conscience, continue in my current role as Dean,” Puschner wrote in an email to the veterinary college community. “The lack of success in holding individuals accountable for the hurt they have caused to others troubles me and crosses the boundaries of my professional ethics and personal integrity and morals. MSU needs rapid and sustained progress in this regard to minimize any future harm to individuals, and to retain talent.”
Puschner added that she will return to the faculty ranks.
The resignation comes as Michigan State remains embroiled in controversy related to sexual misconduct and Title IX issues. Former president Dr. Samuel Stanley Jr. was pushed out by the Board of Trustees last year over allegations that he mishandled Title IX issues, making him the third president to be toppled by the issue, which dates back to the case of Michigan State doctor Larry Nassar, who sexually abused hundreds of women over multiple years under the guise of medical treatment.
MSU is also being sued by former business dean Sanjay Gupta, who was pushed out of his role last year for allegedly failing to report an instance of an employee touching a student inappropriately, a matter that remains under investigation.
Birgit Puschner, dean of Michigan State University’s College of Veterinary Medicine, announced her resignation Monday, effective March 31, citing institutional failures in sexual misconduct investigations and a lack of accountability for alleged perpetrators, according to The Detroit News.
“After years of all-consuming work, I came to the conclusion that I cannot, in good conscience, continue in my current role as Dean,” Puschner wrote in an email to the veterinary college community. “The lack of success in holding individuals accountable for the hurt they have caused to others troubles me and crosses the boundaries of my professional ethics and personal integrity and morals. MSU needs rapid and sustained progress in this regard to minimize any future harm to individuals, and to retain talent.”
Puschner added that she will return to the faculty ranks.
The resignation comes as Michigan State remains embroiled in controversy related to sexual misconduct and Title IX issues. Former president Dr. Samuel Stanley Jr. was pushed out by the Board of Trustees last year over allegations that he mishandled Title IX issues, making him the third president to be toppled by the issue, which dates back to the case of Michigan State doctor Larry Nassar, who sexually abused hundreds of women over multiple years under the guise of medical treatment.
MSU is also being sued by former business dean Sanjay Gupta, who was pushed out of his role last year for allegedly failing to report an instance of an employee touching a student inappropriately, a matter that remains under investigation.
When Ruth Simmons assumed the presidency of Prairie View A&M University in 2017, it was considered a major boost to the historically Black university. She brought to the role decades of leadership experience, including stints as the president of Smith College and then Brown University, where she became the first Black president to lead any Ivy League institution.
Prairie View A&M hired Simmons, then 71, in an interim capacity, luring her out of retirement for the job, which eventually became permanent. She has been credited with improving fundraising and student outcomes at Prairie View A&M.
But now, six years later, Simmons has left her post several months ahead of a planned June departure, resigning in protest over a Texas A&M University system policy that bars presidents of system colleges such as Prairie View A&M from hiring permanent cabinet members when they are on their way out.
System officials have stressed that the policy has been in place for decades; Simmons said she refused to be limited in her capacity to do her job before her scheduled departure in June, leading her to officially exit the presidential role last week. But outside observers—and other college presidents—say it makes sense to defer certain hires, given that the new president would understandably prefer to work with their own chosen cabinet.
When Simmons announced her early departure last month, she didn’t mince words, suggesting Texas A&M system officials told her “she could only continue as president with limited presidential authority.” Specifically, Simmons raised a complaint about limitations on hiring.
“My immediate response was that I could not and would not agree to being president in name only. No enduring good can arise from subservience to low standards and expectations,” Simmons said in a statement announcing her departure. “I will support the efforts of faculty, staff and students who seek the best for themselves and their university. We must not be held hostage to how others choose to see us or treat us, but, instead, continue to chart our own path demonstrating the pride, commitment and integrity that defines us.”
John Sharp, chancellor of the Texas A&M system, responded with a statement of his own, flagging system policies on presidential hiring powers.
“When Presidents in The Texas A&M University System announce they are leaving, they cannot hire senior staff or Deans except on an interim basis, so that the new President can choose the leadership team he or she will be working with during their term,” Sharp said on the same day Simmons announced her early exit. “This decade-long policy applies to all of our Presidents.”
Sharp pointed to previous examples at Texas A&M University, as well as Prairie View A&M, stating that Simmons’s predecessor had the same limitations when she was hired in 2017.
(Both Simmons and Sharp declined interviews with Inside Higher Ed.)
It is unclear which role Simmons was unable to fill during her last days as president, but the job openings on Prairie View A&M’s job board include a current listing for a dean to lead the College of Juvenile Justice and the Texas Juvenile Crime Prevention Center.
While Texas A&M system policies prevent outgoing presidents from hiring full-time executives to top positions, some presidents choose to defer those hiring powers to their successors. That’s what Lawrence Bacow chose to do at Harvard University; he told The Harvard Crimson that he would leave the filling of four vacant dean positions to incoming president Claudine Gay, who will formally begin the job this summer. Bacow said a similar process also played out when he was hired as president.
(Harvard declined to comment on Bacow’s decision to defer hiring powers to Gay.)
Higher education observers note that some colleges, such as Harvard, extend hiring powers to incoming presidents as a matter of custom, while others, such as the Texas A&M system, do so based on standing policies. The former approach, they suggest, is more common—and usually the right thing to do.
“I think it isn’t fair to individuals that you hire into a permanent position if they are hired by an individual who leaves that position, and they suddenly find themselves with a new boss,” said Sally Mason, a senior consultant and senior fellow for AGB Consulting and president emerita at the University of Iowa. “That doesn’t always work. It can, it’s great when it does, but it might not.”
It’s also important, Mason said, to allow new presidents the opportunity to choose their cabinet. She added that not allowing new presidents to choose their cabinet puts them at a disadvantage.
“It’s not fair to whoever might be selected as the next president,” Mason said. “It is often a wonderful opportunity for a new president to be able to select a team that he or she is going to be working with, hopefully, for the foreseeable future, and one that can come together around the new president’s priorities that perhaps are different than the previous president’s priorities.”
Armand Alacbay, chief of staff and senior vice president of strategy at the American Council of Trustees and Alumni, offered a similar perspective.
“There’s a certain logic in deferring to the incoming administration in selecting their team,” he said. “The overarching charge is to ensure … as smooth of a transition as possible.”
He also noted that it may be harder for an outgoing president to find top talent for cabinet positions, given that the new hires know they will be under the authority of a new boss in short order.
But “every situation is different,” Alacbay added; some presidents have longer off-ramps than others. For example, if an interim president is serving for two years, it makes more sense for them to fill top positions rather than leave those vacant and defer hiring to the next leader.
Meanwhile, despite the dramatic exit, both Simmons and Prairie View A&M have moved on.
Simmons was named a president’s distinguished fellow at Rice University and a senior adviser to the president of Harvard on engagement with historically Black colleges and universities. Both announcements came shortly after Simmons stated she would be leaving the Prairie View A&M presidency early.
Texas A&M system officials have since appointed Michael L. McFrazier as acting president of Prairie View A&M, temporarily elevating him from his role as dean to serve as a stopgap interim. Prairie View A&M’s next president, Tomikia P. LeGrande, will officially step into the job on June 1.
Facing financial pressures, the King’s College made a recent appeal to donors for $2.6 million to meet immediate needs, warning that the small evangelical institution located in the heart of Wall Street is at risk of closure if it can’t quickly fundraise its way out of a dire situation.
The deadline to raise the $2.6 million was Feb. 15. So far, the college has raised $178,000, according to an email sent to supporters earlier this week. While officials have described Feb. 15 as an artificial deadline to spur donors into action, the fundraising results thus far fall so short of what’s required that the goal seems out of reach.
College officials have said the money is needed to meet basic needs such as rent and payroll.
Meanwhile, the King’s College is exploring partnerships even as it courts donors, hoping a higher education savior will step up if the generosity of philanthropists doesn’t come through.
In a virtual prayer meeting on Feb. 3, Interim President Stockwell Day—a former Canadian minister of finance—noted that the college wasn’t close to hitting the $2.6 million mark but downplayed the possibility of a closure. Still, he noted, students are worried. And while college officials may not want to talk about an abrupt closure, students are having those conversations.
“Nobody knows the hour,” Day said on Feb. 3, making a scriptural reference to uncertainty, “but I can tell you and you can tell students, parents and others, it is our every intent and goal to get to the end of the semester here. If anything changes, we absolutely will tell you, and yes, we are required to have a plan for a teach-out—that’s actually a requirement of [our accreditor].”
The King’s College did not provide a comment despite multiple requests from Inside Higher Ed. (The college also removed an Inside Higher Ed reporter from the Feb. 3 virtual prayer meeting, though the link was publicly available.)
Since then, information has dripped out in twice-monthly community updates—held after the college’s regular Monday public readings of Scripture—and regular emails to alumni.
The news has not been promising. Fundraising is stagnant. And a potential partnership with another institution—one that Day referred to in the Feb. 3 meeting as a “significant university”—has not yet manifested due to the lack of unanimous support from that institution’s governing board. Conversations with another possible partner, also unnamed, are ongoing.
“We haven’t seen a proposal yet from them, but I can tell you, people are very interested,” Day told the virtual prayer meeting attendees.
He also noted that the King’s College accreditor, the Middle States Commission on Higher Education, requires a teach-out plan for students, which the college is working on.
“In order to be prepared for any scenario, King’s has been working with a number of colleges and universities to develop preferred transfer agreements. These agreements would be put in place should we need them, and our academic affairs staff would assist students with this process,” members of the college’s executive committee wrote in a Feb. 14 email update to constituents.
The same email noted that the college intends to hold its graduation as scheduled on May 6, and “at this time, there is no plan to close the College before the end of the [spring] semester.”
Higher education experts look at various metrics to determine a college’s financial health: enrollment trends, reliance on tuition dollars, assets, expenditures and so on. But students at the King’s College have another metric: free Chick-fil-A.
The college typically provides students with free food from Chick-fil-A at its weekly public reading of Scripture. But when recent budget cuts forced the college to temporarily pause those offerings, students were stunned, said Melinda Huspen, a junior at the King’s College and managing editor of The Empire State Tribune, the student newspaper.
“What people always told each other is, ‘We’ll know when the college is really in trouble when they can’t offer free Chick-fil-A anymore,’” Huspen told Inside Higher Ed. “And sure enough, in the budget cuts, one of the first things they said was they wouldn’t be offering free Chick-fil-A anymore. And that’s kind of when everybody went, ‘Oh, no, this is real. This is really real.’”
(After a four-week absence, free Chick-fil-A recently returned, thanks to an anonymous donor, Huspen noted.)
Students living in residential housing also grew concerned when late-rent notices were slipped under their doors in early February—letters that college officials said should have been sent to the administration.
“The initial response, especially among the freshmen, was definitely panic,” Huspen said, adding that the college has since assured the student body that they won’t lose housing this semester.
Publicly available financial reports for the King’s College suggest that fiscal issues at the institution have been simmering for years. The college has been running at a financial deficit since fiscal year 2019, with liabilities increasing and assets shrinking.
The volatility extends to the college’s pricing structure. In January 2022, officials announced they were dropping annual tuition from $37,000 to $21,000 for students entering that fall. But once the semester rolled around, they reversed the tuition cut, raising the price for domestic students to $35,000 a year.
And most students at the King’s College pay close to full tuition, according to the Department of Education’s Integrated Postsecondary Education Data System, which shows that in the 2020–21 academic year, students at the lowest income levels paid an average annual tuition of $26,239, and those at the highest paid $37,153.
The college is currently trying to sell the lone building it owns, DeVos Hall, named for the DeVos family—including former education secretary Betsy DeVos. (The DeVos family donated millions to the institution, and the King’s College has a tribute page to the late megadonor Richard DeVos, the former secretary’s father-in-law, on its website.) Officials noted in the Feb. 3 meeting that an offer is on the table for the building, though they did not provide any specifics on the purchase amount or closing date.
The King’s College has sent a frequent and consistent message to donors: without immediate financial support, it will be forced to close.
But the “donate now or we need to close the doors” appeal is a difficult one, said Bill Stanczykiewicz, director of the Fund Raising School at Indiana University’s Lilly Family School of Philanthropy. “That type of fire alarm fundraising very often is not successful. And the reason is that donors can easily say, ‘Well, what happens when this amount runs out? Are we just delaying the inevitable?’ And to the credit of King’s College, they do have a next step plan in place.”
Day told campus constituents the college—which has fewer than 350 current students and 6,000 alumni—could raise the money if each graduate donated as little as $500.
In the past, the King’s College attracted multimillion-dollar donations from big-name philanthropists. But some notable donors who sustained the institution appear to be no longer writing checks to the college. Both Richard DeVos and his wife, Helen DeVos, passed away in the past few years.
Then there’s Bill Hwang, another megadonor who pumped $3.7 million into the King’s College over the course of a decade through his Grace & Mercy Foundation, according to Bloomberg. While Hwang, a billionaire, made headlines over the years for his generous support of religious institutions, he’s in the news for altogether different reasons these days—namely a financial scandal that rocked Wall Street, which led to him being charged with racketeering and fraud in 2022.
Now, as the King’s College faces immediate needs and an uncertain future, its biggest donors are no longer in play, leaving the college scrambling to raise $2.6 million—an amount that is existential for the institution but “a nickel in the sofa cushion” of total charitable giving, Stanczykiewicz said, noting that Americans gave $485 billion to charity in 2021.
Though the college’s needs are pressing, Stanczykiewicz said the institution has a number of benefits working in its favor, especially its unique mission as an evangelical university located in the heart of Wall Street. That, he said, gives the King’s College a strong platform to fundraise from.
And while the money hasn’t come in yet, Stanczykiewicz said there is still cause for hope.
“Candidly, on Wall Street, somebody could write a $2.6 million check out of their desk drawer. And maybe they’re talking to some of those folks who can write a six- or seven-figure check,” Stanczykiewicz said.
Facing financial pressures, the King’s College made a recent appeal to donors for $2.6 million to meet immediate needs, warning that the small evangelical institution located in the heart of Wall Street is at risk of closure if it can’t quickly fundraise its way out of a dire situation.
The deadline to raise the $2.6 million was Feb. 15. So far, the college has raised $178,000, according to an email sent to supporters earlier this week. While officials have described Feb. 15 as an artificial deadline to spur donors into action, the fundraising results thus far fall so short of what’s required that the goal seems out of reach.
College officials have said the money is needed to meet basic needs such as rent and payroll.
Meanwhile, the King’s College is exploring partnerships even as it courts donors, hoping a higher education savior will step up if the generosity of philanthropists doesn’t come through.
In a virtual prayer meeting on Feb. 3, Interim President Stockwell Day—a former Canadian minister of finance—noted that the college wasn’t close to hitting the $2.6 million mark but downplayed the possibility of a closure. Still, he noted, students are worried. And while college officials may not want to talk about an abrupt closure, students are having those conversations.
“Nobody knows the hour,” Day said on Feb. 3, making a scriptural reference to uncertainty, “but I can tell you and you can tell students, parents and others, it is our every intent and goal to get to the end of the semester here. If anything changes, we absolutely will tell you, and yes, we are required to have a plan for a teach-out—that’s actually a requirement of [our accreditor].”
The King’s College did not provide a comment despite multiple requests from Inside Higher Ed. (The college also removed an Inside Higher Ed reporter from the Feb. 3 virtual prayer meeting, though the link was publicly available.)
Since then, information has dripped out in twice-monthly community updates—held after the college’s regular Monday public readings of Scripture—and regular emails to alumni.
The news has not been promising. Fundraising is stagnant. And a potential partnership with another institution—one that Day referred to in the Feb. 3 meeting as a “significant university”—has not yet manifested due to the lack of unanimous support from that institution’s governing board. Conversations with another possible partner, also unnamed, are ongoing.
“We haven’t seen a proposal yet from them, but I can tell you, people are very interested,” Day told the virtual prayer meeting attendees.
He also noted that the King’s College accreditor, the Middle States Commission on Higher Education, requires a teach-out plan for students, which the college is working on.
“In order to be prepared for any scenario, King’s has been working with a number of colleges and universities to develop preferred transfer agreements. These agreements would be put in place should we need them, and our academic affairs staff would assist students with this process,” members of the college’s executive committee wrote in a Feb. 14 email update to constituents.
The same email noted that the college intends to hold its graduation as scheduled on May 6, and “at this time, there is no plan to close the College before the end of the [spring] semester.”
Higher education experts look at various metrics to determine a college’s financial health: enrollment trends, reliance on tuition dollars, assets, expenditures and so on. But students at the King’s College have another metric: free Chick-fil-A.
The college typically provides students with free food from Chick-fil-A at its weekly public reading of Scripture. But when recent budget cuts forced the college to temporarily pause those offerings, students were stunned, said Melinda Huspen, a junior at the King’s College and managing editor of The Empire State Tribune, the student newspaper.
“What people always told each other is, ‘We’ll know when the college is really in trouble when they can’t offer free Chick-fil-A anymore,’” Huspen told Inside Higher Ed. “And sure enough, in the budget cuts, one of the first things they said was they wouldn’t be offering free Chick-fil-A anymore. And that’s kind of when everybody went, ‘Oh, no, this is real. This is really real.’”
(After a four-week absence, free Chick-fil-A recently returned, thanks to an anonymous donor, Huspen noted.)
Students living in residential housing also grew concerned when late-rent notices were slipped under their doors in early February—letters that college officials said should have been sent to the administration.
“The initial response, especially among the freshmen, was definitely panic,” Huspen said, adding that the college has since assured the student body that they won’t lose housing this semester.
Publicly available financial reports for the King’s College suggest that fiscal issues at the institution have been simmering for years. The college has been running at a financial deficit since fiscal year 2019, with liabilities increasing and assets shrinking.
The volatility extends to the college’s pricing structure. In January 2022, officials announced they were dropping annual tuition from $37,000 to $21,000 for students entering that fall. But once the semester rolled around, they reversed the tuition cut, raising the price for domestic students to $35,000 a year.
And most students at the King’s College pay close to full tuition, according to the Department of Education’s Integrated Postsecondary Education Data System, which shows that in the 2020–21 academic year, students at the lowest income levels paid an average annual tuition of $26,239, and those at the highest paid $37,153.
The college is currently trying to sell the lone building it owns, DeVos Hall, named for the DeVos family—including former education secretary Betsy DeVos. (The DeVos family donated millions to the institution, and the King’s College has a tribute page to the late megadonor Richard DeVos, the former secretary’s father-in-law, on its website.) Officials noted in the Feb. 3 meeting that an offer is on the table for the building, though they did not provide any specifics on the purchase amount or closing date.
The King’s College has sent a frequent and consistent message to donors: without immediate financial support, it will be forced to close.
But the “donate now or we need to close the doors” appeal is a difficult one, said Bill Stanczykiewicz, director of the Fund Raising School at Indiana University’s Lilly Family School of Philanthropy. “That type of fire alarm fundraising very often is not successful. And the reason is that donors can easily say, ‘Well, what happens when this amount runs out? Are we just delaying the inevitable?’ And to the credit of King’s College, they do have a next step plan in place.”
Day told campus constituents the college—which has fewer than 350 current students and 6,000 alumni—could raise the money if each graduate donated as little as $500.
In the past, the King’s College attracted multimillion-dollar donations from big-name philanthropists. But some notable donors who sustained the institution appear to be no longer writing checks to the college. Both Richard DeVos and his wife, Helen DeVos, passed away in the past few years.
Then there’s Bill Hwang, another megadonor who pumped $3.7 million into the King’s College over the course of a decade through his Grace & Mercy Foundation, according to Bloomberg. While Hwang, a billionaire, made headlines over the years for his generous support of religious institutions, he’s in the news for altogether different reasons these days—namely a financial scandal that rocked Wall Street, which led to him being charged with racketeering and fraud in 2022.
Now, as the King’s College faces immediate needs and an uncertain future, its biggest donors are no longer in play, leaving the college scrambling to raise $2.6 million—an amount that is existential for the institution but “a nickel in the sofa cushion” of total charitable giving, Stanczykiewicz said, noting that Americans gave $485 billion to charity in 2021.
Though the college’s needs are pressing, Stanczykiewicz said the institution has a number of benefits working in its favor, especially its unique mission as an evangelical university located in the heart of Wall Street. That, he said, gives the King’s College a strong platform to fundraise from.
And while the money hasn’t come in yet, Stanczykiewicz said there is still cause for hope.
“Candidly, on Wall Street, somebody could write a $2.6 million check out of their desk drawer. And maybe they’re talking to some of those folks who can write a six- or seven-figure check,” Stanczykiewicz said.
The University of Texas system is pausing new policies to promote diversity, equity and inclusion efforts, the Board of Regents announced Wednesday. The move comes weeks after Texas governor Greg Abbott sent letters to state institutions arguing that the use of DEI policies in hiring practices could amount to illegal discrimination and violate state and federal laws.
UT system Board of Regents chair Kevin Eltife said at Wednesday’s meeting that “certain DEI efforts have strayed from the original intent to now imposing requirements and actions that, rightfully so, has raised the concerns of our policy makers about those efforts on campuses across our entire state,” according to The Austin-American Statesman.
The newspaper reported that the UT system Board of Regents has requested a report on DEI policies in order to allow the governing body to review those practices across the system. Additionally, Eltife said he would welcome legislative action to provide guidance on DEI policies.
DEI practices vary by institution but often include efforts to recruit more historically underrepresented students, to hire more diverse candidates and to make campuses welcoming for a broad cross-section of constituents. Such efforts have, however, attracted significant pushback from conservatives who have argued DEI practices are an imposition of liberal values.
DEI has received increased attention from conservative lawmakers recently, particularly in Florida, where Governor Ron DeSantis has promised to defund such efforts at state colleges and universities and has appointed anti-DEI activists to the board of the New College of Florida.
Stanford University will raise undergraduate tuition by 7 percent for the upcoming academic year, citing inflation, which has squeezed institutions and consumers alike across the U.S.
The move marks a significant jump from the 4 percent tuition increase Stanford’s Board of Trustees approved last year. Experts say Stanford is an outlier in the size of its tuition increase, though they expect numerous other institutions to raise sticker prices in the coming months.
Attending Stanford now costs upward of $82,000 a year, including room, board and the listed tuition price.
The silver lining for many students is that the university is also expanding financial aid, raising the income threshold for free tuition, room and board from $75,000 to $100,000. According to Stanford’s website, students with annual family incomes between $100,000 and $150,000 will at a minimum have tuition covered by the university.
Experts note that students at other universities without such deep pockets will likely feel the pain of inflation pricing as tuitions start to rise.
A university spokesperson noted by email that “Stanford has for many years committed to providing sufficient scholarship support so that parents with annual incomes below a certain threshold, and assets typical of that income level, are not expected to contribute toward tuition, room, or board. This income threshold will increase to $100,000 beginning in 2023–24. Further, Stanford’s aid program will take into account the increase in tuition for current students receiving need-based financial aid; those whose family financial circumstances do not change can expect to pay the same amount they do this year, and possibly less for those with family incomes under $100,000.”
According to Stanford’s website, about two-thirds of students receive some form of financial aid. Even students whose families earn more than $150,000 may be awarded aid “on a sliding scale based on family finances.”
The Department of Education’s Integrated Postsecondary Education Data System shows that full-time freshmen from families with incomes over $110,000 paid an average of $42,108 a year, whereas those in the $75,001-to-$110,000 band paid $9,562 in the 2020–21 academic year, according to the most recent data available.
Bill Hall, co-founder and president of Applied Policy Research, which advises colleges on admissions, enrollment and economic forecasting, said that a 7 percent tuition increase is “extremely aggressive” compared to the advice he is giving clients. At the same time, Hall noted that the sharp spike likely won’t affect a large number of students or drive many applicants away.
Though it sounds steep, a 7 percent tuition increase isn’t much for high-income earners, who experts note are less price sensitive than many families struggling to pay for college. (At Stanford, fewer than 20 percent of undergraduates received Pell grants in the 2021–22 academic year, according to recent university data.)
In a sense, said Hall, Stanford is playing Robin Hood by using “extra income that the university will be making from the more affluent to provide even stronger support for poor students.”
David Feldman, an education economist at the College of William & Mary, offered a similar take, noting that Stanford is essentially “taxing the rich to subsidize the poor” with its tuition increase. Feldman also noted the concentration of wealthy families at Stanford, who can afford the hike.
Given Stanford’s acceptance rate, which in recent years has fallen below 5 percent, Feldman said it’s hard to believe that a few thousand dollars’ difference will drive the highest-income earners toward another institution. One possible negative, Feldman noted, is that low-income families who don’t understand tuition discounting as well as their high-income counterparts may be deterred from applying to Stanford, given the sticker shock associated with listed tuition prices. But over all, Feldman said, the tuition increase is a fairly low-risk move for Stanford.
Experts expect that Stanford’s 7 percent jump will be an outlier, even as more institutions announce likely price hikes this fall.
They note that colleges and universities are juggling financial pressures on multiple fronts beyond inflation. The challenges they face include hiring and retention issues, demands for higher pay, slumping endowment returns for the most recent fiscal year, deferred maintenance costs, and the loss of generous federal relief money that flowed to colleges during the coronavirus pandemic.
“The real cost of college at most institutions has been declining over the past three years,” Feldman said. “Most schools have kept tuition relatively flat through COVID, so the real cost to students is declining, but the real costs to the schools are not. So there are a lot of pent-up needs.”
Those financial pressures inevitably will lead colleges to raise tuition for the 2023 academic year, though Hall suggests those forthcoming increases are likely to be in the 3 to 5 percent range.
“I do not think the spectacular figures that you find for outliers are going to become dominant. I watched our strongest institutions start out above my range of 3 to 5 percent, and work their way back under 5 percent. If I were to make a forecast right now, for the nonelite institutions, I would say you’re going to be approaching a 4 percent tuition increase” on average, Hall said.
While some colleges have frozen tuition, both Hall and Feldman are skeptical about that approach, suggesting that operating funds have to come from somewhere. One common example is Purdue University, which has famously frozen tuition for 12 consecutive years. At the same time, experts note that Purdue has recruited more out-of-state students, who pay higher tuition.
While Stanford is the latest to use recent inflation rates as a rationale for raising tuition, it isn’t the first. Other colleges cited inflation last summer when they raised tuition. For example, when Boston University raised tuition by 4.25 percent last year, President Robert Brown explained the move in a letter to campus noting that his “greatest immediate concern is the impact of inflation.”
At the time, the inflation rate was 8.3 percent over the prior 12 months, according to data from the U.S. Bureau of Labor Statistics. Inflation now stands at 6.4 percent, per recent BLS data, still much higher than the 2 percent inflation target set by the Federal Reserve.
While tuition is almost inevitably going up at many institutions, Feldman suggests that there is an understanding among consumers that may be advantageous to higher education leaders to help communicate those decisions. Consumers understand how rising costs affect their own budgets, Feldman said, meaning colleges have a natural explanation for increasing tuition prices.
And for Hall, who regularly works with colleges, that’s exactly the message many want to send.
“In the conversations I’ve had with chief financial officers, they’re saying, ‘I want to take advantage of the inflationary circumstances where people understand inflation and rising costs, but I don’t want to jump on a bandwagon that puts me in a position where they’re lumping me in with large oil companies making record profits,’” Hall said. “‘We’re not making record profits—we’re trying to make up for losses in the last few years. Most importantly, we’re trying to make up for the loss of a substantial amount of free federal money that came our way as COVID relief.’”
Soaring inflation put a squeeze on college endowments in the 2021–22 fiscal year, driving returns down, according to the annual report from the National Association of College and University Business Officers
The report, released today, is a marked change from the booming returns of fiscal year 2021, when endowments soared. The average return for all college endowments in fiscal 2022 was negative 8 percent, falling far short of the 30.6 percent overall average return in 2021. NACUBO also found that colleges increased their endowment spending, with dollars increasingly flowing toward institutional operating budgets, largely focused on student financial aid.
The survey, conducted by NACUBO and the financial service company TIAA, counted 678 participating colleges and universities with a total of $807 billion in assets.
A news release from NACUBO notes that the dramatic reversal reflects the fact that the second half of fiscal 2022 “included robust tightening efforts by central banks to combat surging inflation, along with significant geopolitical disruptions” that drove financial markets down. The news release adds that “all endowment size cohorts posted negative returns,” though the largest endowments—those with assets upward of $1 billion—averaged returns of negative 4.5 percent. By contrast, those in the smallest cohort, with less than $25 million in assets, saw average returns of negative 11.5 percent.
“The 2022 fiscal year was truly a tale of two markets, with positive economic tailwinds driving equities higher through December 2021, followed by a crushing combination of inflationary pressures and other factors that forced most major investment indices down sharply by the year’s close,” Jill Popovich, a TIAA official, said in a news release accompanying the study.
Despite the rocky returns, NACUBO found that donations to endowments increased by an average of 22 percent in 2022, for institutions with both large and small endowments. Strong gifting, officials noted, helped offset endowment losses driven by a market downturn.
The institutions with the five largest endowments remained unchanged from fiscal year 2021. Once again, in order, the largest endowments belong to Harvard University ($49.4 billion), the University of Texas system ($42.6 billion), Yale University ($41.3 billion), Stanford University ($36.3 billion) and Princeton University ($35.8 billion), according to NACUBO’s figures. Endowments for all five have declined slightly when compared to fiscal year 2021.
| Rank | Institution Name | Fiscal 2022 Total Endowment Market Value (in $1,000s) | Fiscal 2021 Total Endowment Market Value (in $1,000s) | Change in Market Value (%) |
| 1 | Harvard University | 49,444,494 | 51,900,662 | -4.73 |
| 2 | University of Texas System | 42,668,276 | 42,906,847 | -0.56 |
| 3 | Yale University | 41,383,300 | 42,282,900 | -2.13 |
| 4 | Stanford University | 36,300,000 | 37,800,000 | -3.97 |
| 5 | Princeton University | 35,794,186 | 37,697,509 | -5.05 |
| 6 | Massachusetts Institute of Technology | 24,739,862 | 27,527,204 | -10.13 |
| 7 | University of Pennsylvania | 20,724,351 | 20,523,546 | 0.98 |
| 8 | Texas A&M University System | 18,243,191 | 18,028,267 | 1.19 |
| 9 | University of Michigan | 17,347,188 | 17,022,683 | 1.91 |
| 10 | University of Notre Dame | 16,729,299 | 18,074,543 | -7.44 |
| 11 | University of California | 15,417,663 | 16,267,485 | -5.22 |
| 12 | Northwestern University | 14,121,488 | 14,958,441 | -5.6 |
| 13 | Columbia University | 13,279,846 | 14,349,970 | -7.46 |
| 14 | Washington University | 12,252,329 | 13,536,003 | -9.48 |
| 15 | Duke University | 12,116,260 | 12,692,472 | -4.54 |
| 16 | Vanderbilt University | 10,206,067 | 10,928,512 | -6.61 |
| 17 | Emory University | 9,997,742 | 11,031,029 | -9.37 |
| 18 | University of Virginia | 9,858,442 | 10,532,651 | -6.4 |
| 19 | Cornell University | 9,838,198 | 10,028,480 | -1.9 |
| 20 | Johns Hopkins University | 8,244,472 | 9,315,279 | -11.5 |
| 21 | Dartmouth College | 8,065,743 | 8,484,189 | -4.93 |
| 22 | Rice University | 7,814,267 | 8,061,260 | -3.06 |
| 23 | University of Southern California | 7,319,123 | 8,009,340 | -8.62 |
| 24 | Ohio State University | 6,960,782 | 6,814,413 | 2.15 |
| 25 | Brown University | 6,141,243 | 6,520,175 | -5.81 |
Colleges appearing at the bottom of the full endowment list are Oakton Community College ($6.2 million), Lakeland Community College ($5.7 million) and Western Governors University ($1 million).
Of the 678 institutions that participated in the survey, 132 reported assets over $1 billion. However, more than half of survey respondents had endowments of less than $250 million.
Though one-year returns are down by an average of 8 percent, NACUBO data show overall return averages of 7.5 percent over the last three years, 7.3 percent for five-year returns and 7.8 percent for 10-year returns.
Even as endowment returns dipped, colleges tapped those assets to fund their needs. Study respondents reported spending $25.8 billion from their endowments in fiscal 2022, roughly $2 billion more than the $23.9 billion institutions spent in fiscal 2021. Colleges tapped into their endowments for a variety of reasons, but primarily for student financial aid.
Other top areas funded by endowments in fiscal 2022 were academic programs and research, endowed faculty positions, and campus operations and maintenance, NACUBO reported, noting roughly 75 percent of respondents used endowment funds for their operating budget. The median percentage of budgets funded by endowments was 5.3 percent.
One silver lining for colleges seeing negative returns was increased donations, which the survey found were up by an average of 22 percent across both small and large endowments.
“Overall endowment values declined 4 percent, and endowments generated an average return of negative 8 percent overall, but encouragingly, these negative returns were offset by an increase in gifting levels,” Popovich said in a Thursday press call hosted by NACUBO.
Of the 678 participants, approximately two-thirds reported that some donations were specifically tagged for diversity, equity and inclusion initiatives. While such initiatives, commonly referred to as DEI, have been condemned by conservative lawmakers, many donors are directing dollars toward supporting DEI efforts via scholarships, research and funding for faculty.
This is the second year the NACUBO survey has asked about donations for DEI efforts.
“We’re happy to see donors supporting priorities in areas critical to the mission and future of higher education. For NACUBO, increased focus on DEI initiatives is an organizational and sectorwide priority. And we encourage our members to find impactful ways to allocate these gifts now and over the long term,” Lynne Schaefer, NACUBO’s interim president and CEO, said on the press call, adding that colleges also focused more on DEI in selecting investment managers.
She added that colleges with large endowments have seen more gifts in this area than others.
Beyond DEI, the report finds that more colleges are increasingly focused on another three-letter acronym: ESG, which stands for “environmental, social, governance” and refers to standards used by investors to assess the potential impact of investments. ESG investing, broadly speaking, emphasizes environmental sustainability and corporate responsibility. And like DEI, the focus on ESG is also under fire from some conservative lawmakers, though to a lesser degree.
The survey found “over 86 percent of endowments that responded to this year’s question about investment policies include a commitment to environmental, social and governance (ESG) principles in their policies,” up from about 80 percent as reported in last year’s study. An increased focus on ESG comes as student groups and other campus constituents have pressured colleges to divest from fossil fuels, even as the energy sector has boomed and provided major returns for investors.
The 678 participants in the 2022 survey is down from the 720 that participated in last year’s report. The reason for that reduction, explained Ken Redd, senior director of research and policy analysis at NACUBO, was largely due to staffing challenges at colleges.
“Many schools that have participated over many years were not able to this year,” Redd said on the press call, noting that higher education is facing many of the same staffing issues as the corporate world with the loss of employees, which has been deemed the Great Resignation. Redd noted that shrinkage has forced remaining staff members to take on greater workloads.
“We don’t think it’s due to lack of interest as much as just the realities of the labor market,” Redd said about the decline in participation, noting the issue was more prevalent at small institutions.
Soaring inflation put a squeeze on college endowments in the 2021–22 fiscal year, driving returns down, according to the annual report from the National Association of College and University Business Officers
The report, released today, is a marked change from the booming returns of fiscal year 2021, when endowments soared. The average return for all college endowments in fiscal 2022 was negative 8 percent, falling far short of the 30.6 percent overall average return in 2021. NACUBO also found that colleges increased their endowment spending, with dollars increasingly flowing toward institutional operating budgets, largely focused on student financial aid.
The survey, conducted by NACUBO and the financial service company TIAA, counted 678 participating colleges and universities with a total of $807 billion in assets.
A news release from NACUBO notes that the dramatic reversal reflects the fact that the second half of fiscal 2022 “included robust tightening efforts by central banks to combat surging inflation, along with significant geopolitical disruptions” that drove financial markets down. The news release adds that “all endowment size cohorts posted negative returns,” though the largest endowments—those with assets upward of $1 billion—averaged returns of negative 4.5 percent. By contrast, those in the smallest cohort, with less than $25 million in assets, saw average returns of negative 11.5 percent.
“The 2022 fiscal year was truly a tale of two markets, with positive economic tailwinds driving equities higher through December 2021, followed by a crushing combination of inflationary pressures and other factors that forced most major investment indices down sharply by the year’s close,” Jill Popovich, a TIAA official, said in a news release accompanying the study.
Despite the rocky returns, NACUBO found that donations to endowments increased by an average of 22 percent in 2022, for institutions with both large and small endowments. Strong gifting, officials noted, helped offset endowment losses driven by a market downturn.
The institutions with the five largest endowments remained unchanged from fiscal year 2021. Once again, in order, the largest endowments belong to Harvard University ($49.4 billion), the University of Texas system ($42.6 billion), Yale University ($41.3 billion), Stanford University ($36.3 billion) and Princeton University ($35.8 billion), according to NACUBO’s figures. Endowments for all five have declined slightly when compared to fiscal year 2021.
| Rank | Institution Name | Fiscal 2022 Total Endowment Market Value (in $1,000s) | Fiscal 2021 Total Endowment Market Value (in $1,000s) | Change in Market Value (%) |
| 1 | Harvard University | 49,444,494 | 51,900,662 | -4.73 |
| 2 | University of Texas System | 42,668,276 | 42,906,847 | -0.56 |
| 3 | Yale University | 41,383,300 | 42,282,900 | -2.13 |
| 4 | Stanford University | 36,300,000 | 37,800,000 | -3.97 |
| 5 | Princeton University | 35,794,186 | 37,697,509 | -5.05 |
| 6 | Massachusetts Institute of Technology | 24,739,862 | 27,527,204 | -10.13 |
| 7 | University of Pennsylvania | 20,724,351 | 20,523,546 | 0.98 |
| 8 | Texas A&M University System | 18,243,191 | 18,028,267 | 1.19 |
| 9 | University of Michigan | 17,347,188 | 17,022,683 | 1.91 |
| 10 | University of Notre Dame | 16,729,299 | 18,074,543 | -7.44 |
| 11 | University of California | 15,417,663 | 16,267,485 | -5.22 |
| 12 | Northwestern University | 14,121,488 | 14,958,441 | -5.6 |
| 13 | Columbia University | 13,279,846 | 14,349,970 | -7.46 |
| 14 | Washington University | 12,252,329 | 13,536,003 | -9.48 |
| 15 | Duke University | 12,116,260 | 12,692,472 | -4.54 |
| 16 | Vanderbilt University | 10,206,067 | 10,928,512 | -6.61 |
| 17 | Emory University | 9,997,742 | 11,031,029 | -9.37 |
| 18 | University of Virginia | 9,858,442 | 10,532,651 | -6.4 |
| 19 | Cornell University | 9,838,198 | 10,028,480 | -1.9 |
| 20 | Johns Hopkins University | 8,244,472 | 9,315,279 | -11.5 |
| 21 | Dartmouth College | 8,065,743 | 8,484,189 | -4.93 |
| 22 | Rice University | 7,814,267 | 8,061,260 | -3.06 |
| 23 | University of Southern California | 7,319,123 | 8,009,340 | -8.62 |
| 24 | Ohio State University | 6,960,782 | 6,814,413 | 2.15 |
| 25 | Brown University | 6,141,243 | 6,520,175 | -5.81 |
Colleges appearing at the bottom of the full endowment list are Oakton Community College ($6.2 million), Lakeland Community College ($5.7 million) and Western Governors University ($1 million).
Of the 678 institutions that participated in the survey, 132 reported assets over $1 billion. However, more than half of survey respondents had endowments of less than $250 million.
Though one-year returns are down by an average of 8 percent, NACUBO data show overall return averages of 7.5 percent over the last three years, 7.3 percent for five-year returns and 7.8 percent for 10-year returns.
Even as endowment returns dipped, colleges tapped those assets to fund their needs. Study respondents reported spending $25.8 billion from their endowments in fiscal 2022, roughly $2 billion more than the $23.9 billion institutions spent in fiscal 2021. Colleges tapped into their endowments for a variety of reasons, but primarily for student financial aid.
Other top areas funded by endowments in fiscal 2022 were academic programs and research, endowed faculty positions, and campus operations and maintenance, NACUBO reported, noting roughly 75 percent of respondents used endowment funds for their operating budget. The median percentage of budgets funded by endowments was 5.3 percent.
One silver lining for colleges seeing negative returns was increased donations, which the survey found were up by an average of 22 percent across both small and large endowments.
“Overall endowment values declined 4 percent, and endowments generated an average return of negative 8 percent overall, but encouragingly, these negative returns were offset by an increase in gifting levels,” Popovich said in a Thursday press call hosted by NACUBO.
Of the 678 participants, approximately two-thirds reported that some donations were specifically tagged for diversity, equity and inclusion initiatives. While such initiatives, commonly referred to as DEI, have been condemned by conservative lawmakers, many donors are directing dollars toward supporting DEI efforts via scholarships, research and funding for faculty.
This is the second year the NACUBO survey has asked about donations for DEI efforts.
“We’re happy to see donors supporting priorities in areas critical to the mission and future of higher education. For NACUBO, increased focus on DEI initiatives is an organizational and sectorwide priority. And we encourage our members to find impactful ways to allocate these gifts now and over the long term,” Lynne Schaefer, NACUBO’s interim president and CEO, said on the press call, adding that colleges also focused more on DEI in selecting investment managers.
She added that colleges with large endowments have seen more gifts in this area than others.
Beyond DEI, the report finds that more colleges are increasingly focused on another three-letter acronym: ESG, which stands for “environmental, social, governance” and refers to standards used by investors to assess the potential impact of investments. ESG investing, broadly speaking, emphasizes environmental sustainability and corporate responsibility. And like DEI, the focus on ESG is also under fire from some conservative lawmakers, though to a lesser degree.
The survey found “over 86 percent of endowments that responded to this year’s question about investment policies include a commitment to environmental, social and governance (ESG) principles in their policies,” up from about 80 percent as reported in last year’s study. An increased focus on ESG comes as student groups and other campus constituents have pressured colleges to divest from fossil fuels, even as the energy sector has boomed and provided major returns for investors.
The 678 participants in the 2022 survey is down from the 720 that participated in last year’s report. The reason for that reduction, explained Ken Redd, senior director of research and policy analysis at NACUBO, was largely due to staffing challenges at colleges.
“Many schools that have participated over many years were not able to this year,” Redd said on the press call, noting that higher education is facing many of the same staffing issues as the corporate world with the loss of employees, which has been deemed the Great Resignation. Redd noted that shrinkage has forced remaining staff members to take on greater workloads.
“We don’t think it’s due to lack of interest as much as just the realities of the labor market,” Redd said about the decline in participation, noting the issue was more prevalent at small institutions.
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