Story highlights Jane Sanders led a small Vermont college from 2004 thru 2011

The school will close its doors after a land deal she orchestrated failed to pay off

Washington (CNN) Burlington College, the small private liberal arts school in Vermont once headed by Jane Sanders -- wife of Democratic presidential candidate Bernie Sanders -- has announced it will close its doors permanently at the end of this month due to the "crushing weight" of debt incurred from a real estate deal during her time as president.

In a statement provided to CNN, the college said that all of its current students will be able to "continue their education at a neighboring college and graduate as scheduled." As far as students who were planning on attending the school in the fall, they will be "welcomed to colleges within Vermont, of their choosing."

Jane Sanders was president of the school from 2004 to 2011 -- a tumultuous and highly contentious period in the college's history.

Sanders' plan to raise the small school's profile and attract more students was to purchase land for a new campus, 33 acres on the shores of Lake Champlain. The college of approximately 200 students planned on using the new buildings as "offices, labs, kitchens, library, gym, café, and lounges" in addition to housing for 17 students and undeveloped lake front property.

JUST WATCHED Jane Sanders urges Hillary Clinton to release speeches Replay More Videos ... MUST WATCH Jane Sanders urges Hillary Clinton to release speeches 01:20

Read More