Tag: declares

  • Albright College declares ‘remarkable’ turnaround as it borrows $15M from endowment

    Albright College declares ‘remarkable’ turnaround as it borrows $15M from endowment

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    Dive Brief:

    • Albright College is set to borrow $15 million from its $65 million endowment after receiving approval from its board of trustees. 
    • In a Monday statement, the private Pennsylvania institution touted the board’s sign-off on the loan as a show of “confidence in Albright’s direction” and said it plans to use the capital to “strengthen the College, enhance enrollment, and secure Albright’s future.”
    • Albright projects a $10 million operating surplus for the 2025-26 fiscal year after recent years of expanding deficits and concerns about cash levels.

    Dive Insight:

    Borrowing from an endowment is often a red flag that a college is burning through its last available resources. In Albright’s case, the college says it is using the money to solidify a long-term turnaround. 

    Not long ago, the college was issuing signs of distress. When it requested legal permission to tap its endowment for capital, Albright noted that its net assets took a $46 million hit between 2022 and 2024. That pushed the college to take “significant measures to lower its deficit,” including cutting 53 employee positions, according to a Spotlight PA report

    In fiscal 2023, Albright reported a $20.3 million total deficit, well more than double the prior year’s deficit. Its deficit rose even higher, to $23.1 million in fiscal 2024. 

    Those fiscal woes followed years of enrollment declines. Between 2018 and 2023, fall headcount shrunk by nearly 15%, according to federal data. 

    For 2025, the college has 1,150 students, an increase of about 50 students compared to last year, while first-year and transfer enrollment increased 21.5% to 469 students, according to an Albright spokesperson.

    As it sought capital to fund a turnaround, the college couldn’t find a bank loan with manageable interest rates. And so it turned to its endowment.

    The $15 million loan will be drawn down as needed and “comes with a clear repayment plan that includes defined terms, scheduled payments, and quarterly reporting for full accountability and transparency,” Albright said. Per the authorization terms, the repayment period extends 20 years and the loan will carry a minimum of 3% interest

    It’s also being combined with major new gifts as well as $4 million in grant funding from the state Redevelopment Capital Assistance Program, according to the release. 

    With the new funding, Albright is investing in capital projects and deferred maintenance. The “centerpiece” of those improvements, it said, is an expansion and renovation of the college’s central library. The building, which is over 60 years old, will get a student support and disability center, a writing and tutoring center, expanded cultural and technological resources, new conference space and a cafe. 

    With the investments, budget stabilization and recent enrollment growth, Albright sounded a triumphant note in announcing the loan, describing a “remarkable financial turnaround” and gearing up for growth ahead.

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  • DOJ Declares Slew of DEI Practices Unlawful in Memo

    DOJ Declares Slew of DEI Practices Unlawful in Memo

    Photo by Yasin Ozturk/Anadolu via Getty Images

    More than three months after a federal court struck down an Education Department directive that barred any practices that consider race at colleges across the country, the Department of Justice declared Wednesday that diversity, equity and inclusion practices are unlawful and “discriminatory.”

    But the agency’s memo goes even further than ED’s guidance, suggesting that programs that rely on what they describe as stand-ins for race, like recruitment efforts that focus on majority-minority geographic areas, could violate federal civil rights laws. The directive applies to any organization that receives federal funds, and DOJ officials warned that engaging in potentially unlawful practices could lead to a loss in grant funding.

    Other examples of “potentially unlawful proxies” include requirements that job applicants “demonstrate ‘cultural competence,’ ‘lived experience,’ or ‘cross-cultural skills’” or narratives about how the applicant has overcome obstacles, Attorney General Pamela Bondi wrote.

    This interpretation of federal law could present new challenges for colleges that have relied on tactics like place-based recruitment to create diverse student bodies since the Supreme Court banned affirmative action in 2023. For instance, some colleges have guaranteed admission to students who graduate in the top 10 percent of their high schools.

    “This highlights that every practice of colleges is under scrutiny, even ones that have been viewed as politically safe for years (such as top ten percent plans or even TRIO programs). The only truly safe ways to admit students right now are to admit everyone or only use standardized test scores,” Robert Kelchen, a professor in the University of Tennessee at Knoxville’s Department of Educational Leadership and Policy Studies, wrote in an email to Inside Higher Ed. “Being an enrollment management leader has always been tough, but now it’s even more challenging to meet revenue targets and satisfy stakeholders who have politically incompatible goals.”

    The document offers clearer guidance about what the Justice Department considers off-limits as it investigates DEI at colleges and universities. The DOJ is playing a greater role in investigating colleges as it enforces its position that DEI programs as well as efforts to boost diversity among faculty and staff violate federal antidiscrimination laws.

    Since President Trump took office in January, he’s targeted DEI programs, practices and personnel via executive orders and other efforts. However, higher ed experts have repeatedly said that the orders don’t change the underlying laws, so colleges that complied with the law before Jan. 20 remain in compliance. In response to the federal edicts, colleges have rolled back a number of their programs and closed centers that catered to specific student groups.

    Many of the practices declared unlawful in the nine-page memo echo those referenced in the Education Department’s February Dear Colleague letter, such as race-based scholarships. But it also explicitly states that “BIPOC-only study lounges” and similar facilities are unlawful. The Education Department’s guidance mentioned race-based facilities generally but not specifically study lounges.

    DEI advocates have long argued that these centers or lounges are open to all students. Some have persisted even after state DEI bans, but multiple colleges have in recent months closed centers that catered to specific student groups. Bondi argued that such spaces violate Title VI of the Civil Rights Act of 1964, which bars discrimination based on race and national origin.

    “Even if access is technically open to all, the identity-based focus creates a perception of segregation and may foster a hostile environment. This extends to any resource allocation—such as study spaces, computer labs, or event venues—that segregates access based on protected characteristics, even if intended to create ‘safe spaces,’” the order reads.

    Lynn Pasquerella, president of the American Association of Colleges and Universities, said that the memo is “another example of governmental overreach into academic freedom, institutional autonomy and shared governance that conditions federal funding on ideological alignment with the administration’s viewpoints.”

    She added that the guidelines in the document violate existing constitutional protections and erode federal civil rights law.

    “What is missing from the DOJ narrative on DEI is that treating people differently is not always unjust, especially when doing so corrects a broader pattern of systemic injustice. Considering race and gender in the context of historic unjust discrimination to inform policies and practices at colleges and universities doesn’t in and of itself constitute illegal discrimination, though the letter suggests otherwise.”

    Beyond race-based practices, the letter also addresses transgender student athletes, building on the Trump administration’s previous actions that advocates say deny the existence of trans individuals and roll back their rights. The memo states that it would “typically be unlawful” for someone assigned male at birth to compete on women’s sports teams or for an institution to “compel” individuals to share an intimate space, like a locker room, with someone of another sex.

    Pasquerella noted that the letter offers guidance, not legal mandates.

    “Nevertheless,” she said, “what are described as ‘best practices and nonbinding suggestions’ will likely cause another wave of anticipatory compliance and overcorrection given the climate of fear and intimidation created by the weaponization of research funds.”

    Katherine Knott contributed to this report.

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  • White House declares goal to reach 1M new apprentices per year

    White House declares goal to reach 1M new apprentices per year

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    President Donald Trump directed the secretaries of Labor, Education and Commerce to submit a plan within 120 days to “reach and surpass 1 million new active apprentices,” according to an executive order signed April 23.

    The fact sheet castigated previous administrations’ investments in higher education, stating that many currently funded programs — including the Workforce Investment and Opportunity Act, signed into law in 2014 — do not have the incentives necessary “to meet workforce training needs.”

    The requested plan must identify:

    • Avenues to expand registered apprenticeships to new industries,
    • Ways to scale apprenticeships across the country, and
    • Ways to improve connections between the education system and apprenticeship programs.

    The fact sheet suggests that the intention of the administration is to reach this 1 million goal each year.

    The order also calls upon the departments of Labor, Commerce and Education to “improve transparency on the performance outcomes of workforce development programs” as well as any credentials that might be supported with federal dollars.

    “This decisive action is yet another example of President Trump keeping his promise to American workers, empowering them to fill good-paying, in-demand jobs that will secure our economic comeback,” Lori Chavez-DeRemer, DOL secretary, said in a statement.

    The White House called out a shortage of construction and durable goods workers that is projected to persist and grow. The fact sheet also flags AI as a focal point for development.

    “As the potential of American AI increases, and as America reshores manufacturing and makes Made in America a mark of international envy, America will need more skilled tradesman [sic] than we’re prepared to train,” the fact sheet said.

    Various reports, including one prepared for the DOL Chief Evaluation Office, have shown how registered apprenticeships can help workers access living wages, particularly workers in construction. That report defined a living wage as “the earnings required to pay for minimum basic needs, including food, housing, transportation, clothing, and other essentials.”

    During Trump’s first administration, the DOL published an apprenticeship rule that enabled employers to create their own versions of registered apprenticeship programs, called Industry-Recognized Apprenticeship Programs. These programs were vetted and approved by third parties, including industry groups. The Biden DOL rescinded the Trump rule in September 2022.

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