Northland College in Ashland, Wis., will remain open under a refocused model that includes reducing the number of majors offered from 40 to eight.
The news announced late Wednesday was a sharp change of course after the private liberal arts school facing a dire financial situation had prepared to shut down at the end of the academic year.
Northland officials in March said the 132-year-old institution would close if they could not raise $12 million to cover budget shortfalls. But in the following weeks, faculty members, an operations committee, the college president and members of the school's board of directors devised a plan to restructure the organization and secure funding to save the school.
"Today's news is thanks to the incredible work done by faculty and staff in a very short amount of time," Northland College President Chad Dayton said. "Together with the Board, a plan was built to keep Northland College open and serving students in a way that is aligned with our mission and the values that define us. I am immensely grateful to all involved for securing the future of this incredible college."
Northland also received historic transformative gifts to help keep the doors open after appealing to donors to contribute to "fund a new Northland College for a more sustainable future," Board Chair Ted Bristol said. The school did not say how much it raised.
Under the new mode, the environmentally focused school serving about 500 undergraduate students will offer eight majors — natural resources, business education, biology with a chemistry minor, psychology and social sciences, Earth studies, environmental humanities and sustainable community development.
Athletic programs also will continue.
The school said it plans to save about $7 million a year by making significant changes to its operational budget and adjusting the size of its faculty and staff. The school did not say if or how many jobs might be cut.
Like many small colleges, Northland has struggled financially for years as it faced declining enrollment. The school, just blocks from Lake Superior, reported large financial losses for seven straight years, according to data from ProPublica.org.
The school reported a deficit of just under $3.3 million on its 2022 tax filings.
The new model puts the college on track for long-term stability, officials said.
"It is not lost on us that today's announcement could have gone a very different direction," said Bristol. "Many colleges like Northland are being forced to make difficult decisions and we've seen many closures in recent years — even in recent weeks. We feel fortunate to be sharing a path forward despite the realities of declining enrollment and rising costs."
