Financial struggles catch up to university in West Virginia before students return for fall semester

In the coming weeks, high school and college students will return to classes, clubs and sports, and settle into a daily routine after summer break.

But students attending Alderson Broaddus University in Philippi, W.V., a small city in the northern region of the state, will return to classes and shocking news. Tests and exams will be the least of their problems this fall semester when classes resume in August.

Last night, the university’s Board of Trustees voted to disband the Baptist institute of higher learning, which was founded in 1932, after the state Higher Education Policy Commission announced that the university will be prohibited from awarding degrees starting Dec. 31, 2023. As reported by the Associated Press, the commission’s decision was made in an emergency meeting held to address the university’s financial struggles, including $775,000 in utility debts.

“While it is no secret that we’ve had challenges with AB being forthcoming with information and working with us, I can’t stress enough how critical it is right now for the leadership at AB to put their students first,” Commission Chancellor Sarah Armstrong Tucker said.

Yesterday was the deadline for utilities to be shut off if the university did not make a payment. Last Thursday, the university announced it would pay $67,000 to the city yesterday and follow a plan for regular payments on the balance.

In Monday night’s meeting, the chair of the trustees confirmed a payment was delivered. In early July, the Commission gave the university temporary approval to continue awarding degrees through June 2024, but said it would reconsider West Virginia’s criteria for financial stability of a university.

The Commission’s decision comes too late for Alderson Broaddus students to transfer to out-of-state universities or colleges. However, West Virginia Wesleyan in nearby Buckhannon and Fairmont State University in Fairmont have offered application and transcript evaluation assistance to Alderson Broaddus students, according to the AP.

“As a neighboring university, Alderson Broaddus has always been a good and respected friend of Fairmont State, and our thoughts are with the students and staff, as well as with the community of Philippi as they begin to navigate the effects of this impactful decision,” Fairmont State said in a statement Tuesday.

The university in Philippi has been struggling for several years. A bank official told the AP that in 2015 the university defaulted on repayment of bonds totaling more than $36 million. The Commission put the school on probation in 2017 and lifted the probation in 2019.