Lower Manhattan’s Alliance University to Shut Down
Alliance University (known as Nyack College until rebranding last year) will permanently close this summer. The school has been based at Two Washington Street (near Battery Place) since 2018, after decamping from the Rockland County campus that had been its home since the 1890s.
On June 26, Alliance received notice from the Middle States Commission on Higher Education (MSCHE) that its accreditation is being withdrawn as of December 31. This followed a preliminary move in March, when the MSCHE alerted the school that it had been placed on “show cause” status, a heightened level of scrutiny under which a college or university must demonstrate that it has resolved alleged problems or else face revocation of accreditation. The MSCHE initially alleged that financial problems at Alliance had cast doubt on its ability to continue operating. A June 22 hearing failed to allay these concerns, which led to the final notification four days later.
“We were surprised by the Middle States’ decision and have worked hard all week to evaluate the different options available to us as an institution,” Alliance said in a statement. “The administration learned of Middle States’ decision on Monday afternoon, and the Board of Trustees met Tuesday evening and again Thursday afternoon. After carefully evaluating all the options and the current financial situation, the Board has made the difficult decision to wind down on-campus and online educational offerings as of August 31, 2023. Alliance University will not offer courses for the Fall semester. This news is a tremendous loss for us who love Alliance University and the people here. We are all grieving.”
The MSCHE has approved “teach-out” plans, under which current Alliance University students will be able to continue their studies at Borough of Manhattan Community College, Fordham University, and other schools.
While loss of accreditation, by itself, does not require a school to shut down, it can portend closure for a college or university because it means that students are no longer eligible for federally funded loans and other government financial aid. The combined effect of tuition revenue dropping while a school’s academic reputation suffers can result in a death spiral from which few colleges or universities recover.
The statement from Alliance concluded with the words, “please pray with us for wisdom and guidance.”