Keystone College plans to merge with a Washington, D.C.-based nonprofit group that was the subject of earlier unsuccessful merger talks.
The deal, announced Friday, would place financially troubled Keystone under a newly formed subsidiary of the Washington Institute for Education and Research.
The institute is "a nonprofit organization formed to further and support higher education," according to a statement released by Keystone. The college's day-to-day operations and academic mission will remain essentially unchanged, the statement added.
The agreement will require the approval of the Keystone's accrediting agency, the Middle States Commission on Higher Education.
“We are extremely fortunate to have secured this new agreement with WIER as it offers Keystone College a viable and more secure future, something that was uncertain earlier this year,” Keystone President John F. Pullo Sr. said in the statement.
Pullo, who serves as a WVIA board member, has declined all interview requests by WVIA News.
“This commitment from WIER is a vital component in support of our continued conversations with Middle States as we work closely with them to retain our accreditation by reassuring them of Keystone’s stability," Pullo added. "We believe it also offers a more definitive message to the entire community, especially prospective Keystone students, that Keystone remains open and will continue to build upon our 156-year legacy.”
The merger requires the approval of the state and federal Departments of Education and the state Attorney General's Office, officials said.
"During these review periods, which could extend into the spring 2025, Keystone remains accredited and will continue operation of classes, as well as all other college activities and intercollegiate sports, and will continue to accept and enroll freshman and transfer students for the Fall 2024 and future semesters," the statement added.
Based in LaPlume Twp., Keystone’s campus straddles the border of Lackawanna and Wyoming counties.
Previous talks
Keystone has endured financial problems for more than a decade and remains on a federal Department of Education list for heightened cash monitoring.
Discussion on a merger began more than two years ago, according to Keystone's statement Friday. In January 2023, the college board of trustees authorized exploring a collaboration with the institute. A month later, the two sides signed "definitive agreements," according to Keystone's fiscal year 2022 audit.
In March 2024, the collaboration fell through by mutual agreement. Less than a week after that, the school placed vice president for finance and administration Stuart Renda on administrative leave and warned faculty and staff against communicating with him. Talks resumed later in the spring and led to the current agreement.
“The entire college community is grateful to WIER for the shared commitment to Keystone’s future,” Pullo said.
“American higher education is losing too many institutions like Keystone which historically serve students for whom a college education changes their entire family’s trajectory," he added.
"While we are dedicated to enhancing that mission, with WIER’s support, we are equally driven to being innovative with respect to the educational opportunities needed for today’s students in all areas, including online, international, and certifications."
A tough 2024
In April, Middle States announced that Keystone faced losing its accreditation, a loss that could seriously damage its ability to operate.
The following month, however, Keystone announced that the school had cut 29 faculty and staff positions as part of an effort to reduce costs.
College accreditation reviewers are scheduled to visit Keystone College later this month to evaluate the financially struggling college again, but classes are expected to start on time.
Middle States Commission on Higher Education peer reviewers also are expected to follow up on a report Keystone submitted to the organization on Aug. 1, the day it was due.
