Posted on November 17th, 2015
by Dr. Kathleen Conn
The ski-nosed comedian Bob Hope once said, “A bank is a place that will lend you money if you can prove that you don’t need it.” When the Middle States Commission on Higher Education (MSCHE) revoked its accreditation of Sojourner-Douglass College in Baltimore, Maryland because of its inadequate financial resources, the college desperately needed the money. Sojourner-Douglass already owed the Federal government more than $5 million in tax liens.
In February 2015, a MSCHE review panel unanimously upheld the Commission’s decision to revoke Sojourner-Douglass’ accreditation, effective June 30, 2015 to allow current students to finish the academic year. The struggling college was founded in 1972 as part of Antioch College, but became an independent institution under Maryland law on February 7, 1980, and received MSCHE accreditation later that same year. From the outset, Sojourner-Douglass received most of its funding from federal Pell grants, and without accreditation, the college became ineligible for federal funding. The college blames changes in Pell grant regulations for a large part of its financial woes.
Sojourner-Douglass served a mainly Black student population of approximately 750 students on multiple neighborhood campuses, with evening and weekend classes. Most students were working adults, with an average age of 38, seeking skills and a degree to enable them to enter nursing, health sciences, and other professional fields.
Ironically, the state of Maryland had identified a health personnel shortage in FY 2015, specifically noting the need for graduates eligible for licensure as physical therapists, medical and clinical laboratory technicians and technologists, practical nurses, and pediatric specialists. The Maryland Higher Education Commission had issued a Request for Application (RFA) for a Health Personnel Shortage Incentive Grant on April 10, 2015, with the grants to begin June 24, 2015, too late for Sojourner-Douglass.
Changes in Pell grant student eligibility regulations have been blamed for financial difficulties in many colleges in some of the poorest cities in the South. The Pell Grant is the largest need-based program administered by the United States Department of Education, with more than 8 million students depending on Pell grants to attend college. Directed to low income students dependent on or independent of parental income, the grant does not require payback. Pell grants are especially important to Black students; more than 60% of Black undergraduates depend on Pell grants.
The Consolidated Appropriations Act of 2012 decreased dramatically the aid available to all students by reducing the number of semesters that a student could receive full-time Pell grant aid, from 18 to 12 semesters. This had a disproportionate effect on colleges like Sojourner-Douglass which operated on a trimester schedule. Also, at the same time, the ability for a student to receive a second scheduled Pell grant disbursement in one academic year was ended. The maximum grant for 2015-2016 is $5,775 per student per year.
Tuition for Sojourner Douglass College was $9,630 for the 2014/2015 academic year. This was 62% cheaper than the national average private non-profit four year college tuition of $25,224. The cost was 49% less than the average Maryland tuition of $18,700 for four-year colleges. In 2013-2014, the latest year for which figures were available, 93% of Sojourner Douglass College students received some kind of grant aid. Fifty-two percent of students received aid in the form of Pell Grants. The average Pell Grant awarded for 2013/2014 Sojourner Douglass students was $5,041. When compared to the already low tuition at Sojourner-Douglass and the percentage of Sojourner Douglass students receiving Pell grants, the tremendous influence of the Pell grants is apparent.
MSCHE’s standards for accreditation are described in MSCHE’s Characteristics of Excellence in Higher Education: Eligibility Requirements and Standards for Accreditation. During a periodic MSCHE review, concerns about Sojourner-Douglass’ finances surfaced.
On November 18, 2011, MSCHE notified the college that its accreditation was at risk.
Sojourner-Douglass was in danger of non-compliance with Standard 3, Institutional Resources, which requires, among other factors, that a college have the financial resources necessary to carry out its mission and achieve its goals.
Over the next three years, a representative of MSCHE visited the Sojourner-Douglass campus twice to assist the college with the review process, representatives visited another three times to evaluate compliance, and over a dozen written communications passed between the college and MSCHE. On November 21, 2014, MSCHE notified Sojourner-Douglass that its accreditation would be revoked on June 30, and its review panel affirmed that decision.
At the last hour, on June 29, Sojourner-Douglass filed suit in court for a temporary restraining order to delay the revocation of accreditation, charging denial of due process, breach of contract, negligence, and racial bias by applying a “double standard” that favored “predominantly White institutions.” MSCHE’s Commission Chair publicly denied the race-based charges, saying that money and money alone was the issue. Because of the racial allegations, the court immediately heard the college’s complaint, but denied the restraining order. The college then filed suit for a preliminary injunction.
Evidentiary hearings and voluminous court filings followed.
Sojourner-Douglass contended the institution had a plan to repay its tax liens, and was prepared to make an immediate repayment of $154,962 to the IRS. MSCHE argued that the amount was not enough, and moved to dismiss the college’s complaint.On August 27, 2015 United States District Judge Ellen Hollander, in an exhaustive 80-page opinion, granted MSCHE’s motion to dismiss all Sojourner-Douglass’ allegations, but without prejudice and with leave to amend.
Sojourner-Douglass President Charles W. Simmons announced that no classes would be scheduled at any of the college campuses for Fall 2015, but the court has left open the possibility of further appeal. One other avenue may still be open to Sojourner-Douglas. Stratford University of Virginia had initially applied for a Maryland Certificate of Approval as an out-of-state degree-granting institution with the intention of operating Sojourner-Douglass under its wing as The Sojourner-Douglass Center at Stratford University. Stratford received approval for the plan on May 20, 2015. However, negotiations between Stratford and Sojourner-Douglass reached an impasse, and no merger or acquisition steps took place before the revocation of Sojourner-Douglass’ certification.
MSCHE never contested the quality of the mission statement, curriculum, or teaching quality at Sojourner-Douglass. Finances were the only issue. With the rising costs of higher education and the diminishing availability of Pell grants and other sources of student funding, the challenge is how to keep the college and university doors open, especially the doors of institutions serving a primarily disadvantaged student population, while at the same time meeting the high standards that peer accreditation demands.
This Collegiate Comment is a publication of the KingSpry Higher Education Law Division. It is meant to be informational and does not constitute legal advice.
Should College Accreditation Depend on Finances?
Posted on November 17th, 2015
by Dr. Kathleen Conn
The ski-nosed comedian Bob Hope once said, “A bank is a place that will lend you money if you can prove that you don’t need it.” When the Middle States Commission on Higher Education (MSCHE) revoked its accreditation of Sojourner-Douglass College in Baltimore, Maryland because of its inadequate financial resources, the college desperately needed the money. Sojourner-Douglass already owed the Federal government more than $5 million in tax liens.
In February 2015, a MSCHE review panel unanimously upheld the Commission’s decision to revoke Sojourner-Douglass’ accreditation, effective June 30, 2015 to allow current students to finish the academic year. The struggling college was founded in 1972 as part of Antioch College, but became an independent institution under Maryland law on February 7, 1980, and received MSCHE accreditation later that same year. From the outset, Sojourner-Douglass received most of its funding from federal Pell grants, and without accreditation, the college became ineligible for federal funding. The college blames changes in Pell grant regulations for a large part of its financial woes.
Sojourner-Douglass served a mainly Black student population of approximately 750 students on multiple neighborhood campuses, with evening and weekend classes. Most students were working adults, with an average age of 38, seeking skills and a degree to enable them to enter nursing, health sciences, and other professional fields.
Ironically, the state of Maryland had identified a health personnel shortage in FY 2015, specifically noting the need for graduates eligible for licensure as physical therapists, medical and clinical laboratory technicians and technologists, practical nurses, and pediatric specialists. The Maryland Higher Education Commission had issued a Request for Application (RFA) for a Health Personnel Shortage Incentive Grant on April 10, 2015, with the grants to begin June 24, 2015, too late for Sojourner-Douglass.
Changes in Pell grant student eligibility regulations have been blamed for financial difficulties in many colleges in some of the poorest cities in the South. The Pell Grant is the largest need-based program administered by the United States Department of Education, with more than 8 million students depending on Pell grants to attend college. Directed to low income students dependent on or independent of parental income, the grant does not require payback. Pell grants are especially important to Black students; more than 60% of Black undergraduates depend on Pell grants.
The Consolidated Appropriations Act of 2012 decreased dramatically the aid available to all students by reducing the number of semesters that a student could receive full-time Pell grant aid, from 18 to 12 semesters. This had a disproportionate effect on colleges like Sojourner-Douglass which operated on a trimester schedule. Also, at the same time, the ability for a student to receive a second scheduled Pell grant disbursement in one academic year was ended. The maximum grant for 2015-2016 is $5,775 per student per year.
Tuition for Sojourner Douglass College was $9,630 for the 2014/2015 academic year. This was 62% cheaper than the national average private non-profit four year college tuition of $25,224. The cost was 49% less than the average Maryland tuition of $18,700 for four-year colleges. In 2013-2014, the latest year for which figures were available, 93% of Sojourner Douglass College students received some kind of grant aid. Fifty-two percent of students received aid in the form of Pell Grants. The average Pell Grant awarded for 2013/2014 Sojourner Douglass students was $5,041. When compared to the already low tuition at Sojourner-Douglass and the percentage of Sojourner Douglass students receiving Pell grants, the tremendous influence of the Pell grants is apparent.
MSCHE’s standards for accreditation are described in MSCHE’s Characteristics of Excellence in Higher Education: Eligibility Requirements and Standards for Accreditation. During a periodic MSCHE review, concerns about Sojourner-Douglass’ finances surfaced.
On November 18, 2011, MSCHE notified the college that its accreditation was at risk.
Sojourner-Douglass was in danger of non-compliance with Standard 3, Institutional Resources, which requires, among other factors, that a college have the financial resources necessary to carry out its mission and achieve its goals.
Over the next three years, a representative of MSCHE visited the Sojourner-Douglass campus twice to assist the college with the review process, representatives visited another three times to evaluate compliance, and over a dozen written communications passed between the college and MSCHE. On November 21, 2014, MSCHE notified Sojourner-Douglass that its accreditation would be revoked on June 30, and its review panel affirmed that decision.
At the last hour, on June 29, Sojourner-Douglass filed suit in court for a temporary restraining order to delay the revocation of accreditation, charging denial of due process, breach of contract, negligence, and racial bias by applying a “double standard” that favored “predominantly White institutions.” MSCHE’s Commission Chair publicly denied the race-based charges, saying that money and money alone was the issue. Because of the racial allegations, the court immediately heard the college’s complaint, but denied the restraining order. The college then filed suit for a preliminary injunction.
Evidentiary hearings and voluminous court filings followed.
Sojourner-Douglass contended the institution had a plan to repay its tax liens, and was prepared to make an immediate repayment of $154,962 to the IRS. MSCHE argued that the amount was not enough, and moved to dismiss the college’s complaint. On August 27, 2015 United States District Judge Ellen Hollander, in an exhaustive 80-page opinion, granted MSCHE’s motion to dismiss all Sojourner-Douglass’ allegations, but without prejudice and with leave to amend.
Sojourner-Douglass President Charles W. Simmons announced that no classes would be scheduled at any of the college campuses for Fall 2015, but the court has left open the possibility of further appeal. One other avenue may still be open to Sojourner-Douglas. Stratford University of Virginia had initially applied for a Maryland Certificate of Approval as an out-of-state degree-granting institution with the intention of operating Sojourner-Douglass under its wing as The Sojourner-Douglass Center at Stratford University. Stratford received approval for the plan on May 20, 2015. However, negotiations between Stratford and Sojourner-Douglass reached an impasse, and no merger or acquisition steps took place before the revocation of Sojourner-Douglass’ certification.
MSCHE never contested the quality of the mission statement, curriculum, or teaching quality at Sojourner-Douglass. Finances were the only issue. With the rising costs of higher education and the diminishing availability of Pell grants and other sources of student funding, the challenge is how to keep the college and university doors open, especially the doors of institutions serving a primarily disadvantaged student population, while at the same time meeting the high standards that peer accreditation demands.
This Collegiate Comment is a publication of the KingSpry Higher Education Law Division. It is meant to be informational and does not constitute legal advice.