Saint Joseph's College could close amid financial woes

Clarification: A previous online version of this story stated Saint Joseph's College needs a cash influx of $100 million by June. Although the college requires $100 million in total, it only needs $20 million committed by June.

RENSSELAER, Ind. — In the wake of financial uncertainty, Saint Joseph's College might have to close its doors.

In a letter sent to the campus community Wednesday, Robert Pastoor, president of the private college, referred to the school's financial challenges as "dire."

The Catholic college, which enrolls about 1,200 students, requires a total cash influx of $100 million, with at least $20 million in commitments by June 1, to continue to serve its students and be successful in the higher education marketplace, according to the letter.

"It is only through financial remedies of this magnitude that I could state confidently that we can provide the kind of educational experience that our students deserve," Pastoor wrote.

The Saint Joseph's Board of Trustees will meet next week to discuss options for the college's future, the letter said.

Greg Gill, director of marketing, said the $100 million figure is the amount needed to address the college's debt, deferred maintenance and other costs necessary to bring it to a financially healthy status.

Still, he said there hasn't been any discussions among school leaders in which they've stated the school will close if it doesn't receive the $20 million amount by June.

"It is true that it’s a pretty bad financial situation," he said, "but we’ve never had any correspondence that the school will be closing."

Gill said he didn't know the cause of the economic problems but that they've been many years in the making.

"I do know it's something that's been brewing for 10, 15-plus years," he said, adding that officials will have more answers after the board meeting.

Amid years of financial difficulties, the Higher Learning Commission in November placed the college on probation until 2018. The Higher Learning Commission provides accreditation to degree-granting post-secondary educational institutions in the north central region of the U.S., including Indiana.

The commission deemed Saint Joseph's wasn't in compliance with its accreditation criteria, citing "concerns related to resources, planning and institutional effectiveness; quality, resources and support of teaching and learning; as well as evaluation and improvement of teaching and learning," according to a public disclosure notice.

Although the college's future is unclear, many of its students, employees and alumni aren't giving up hope.

More than 700 people have liked a Facebook page dedicated to saving Saint Joseph's, named "Involved for Life." Several of those who have commented on the page referred to the campus community as a "family" and have urged others to donate money.

"We really are a family," said Alexis Skinner, a freshman at Saint Joseph’s. "Everyone on this campus knows everyone."

Skinner said she went to a student government meeting Wednesday night, during which Pastoor discussed the situation. He wouldn't comment on whether the school will close, she said, because he's waiting to see what happens at next week's trustees meeting. Pastoor did say the college would help students with the transfer process if it does close, however, Skinner said.

"We feel that it’s true that his first priority is the students," she said, adding Pastoor has only been president since 2015 and that he's getting the "brunt" of the financial situation.

Despite how upsetting the news is, Skinner said, she isn't mad and is hoping for the best.

"I can’t put into words how important this school has been to me," she said.

Contact J&C higher education reporter Meghan Holden at mholden@jconline.com. Follow her on Twitter: @MeghanHolden.