Keystone College has received notification from its accreditor, Middle States Commission on Higher Education, that the school remains accredited.
That allows the school to remain open, though financial challenges remain and an ownership change is pending.
An appeal in the case has been canceled, college officials announced in a statement issued Friday. A hearing had been set for March 31.
It also means that restrictive measures against the college — including bans on marketing to, recruiting, or enrolling new students — are no longer in effect.
Middle States also withdrew a directive that Keystone implement a “teach-out plan,” which includes providing students with information on how to transfer to other schools.
“This recent action by Middle States is welcome news to not only the Keystone community, but we feel the higher education community at large,” Keystone President John F. Pullo, Sr. said in the release.
"We are grateful for the care, diligence and attention that Middle States continues to show Keystone and its students as we navigate to a new future for the college,” added Pullo, who is a WVIA board member.
Based in LaPlume Twp., Keystone’s campus straddles the border of Lackawanna and Wyoming counties.
A tumultuous history
Friday's announcement was the latest development in a lengthy saga which has seen Keystone's fortunes rise and fall against a history of financial struggles in recent years.
Accreditation allows students to obtain access to federal financial aid to attend a school. They spend that on tuition that helps cover a school’s expenses. Without students who can get aid, schools can’t afford to stay open.
Middle States in November warned school officials that a proposed merger with a Washington, D.C.-based nonprofit group was not a sufficient answer to Middle States' concerns about the school's financial woes. The group warned that Keystone could lose accreditation by Dec. 31 if it didn't appeal for a reversal.
Middle States wanted to withdraw accreditation because the school failed to:
- Comply with federal standards that, among other things, require demonstrating sound finances and future financial stability.
- Prove its board of directors serves the public interest and pays attention to operations, finances and policies.
By December Keystone had appealed Middle States' move and was allowed to remain open during the appeal process. Middle States reminded the school it was still subject to the recruiting ban and teach-out process, however.
What changed?
On Feb. 4, as part of a submission to Middle States, Keystone provided financial information that was not available in writing prior to Middle States' decision to withdraw accreditation, Friday's statement said.
On Feb. 21, Keystone submitted a completed "complex substantive change for ownership" review request to Middle States regarding the proposed merger.
Keystone is still seeking to merge with the Washington Institute for Education and Research (WIER). The institute is "a nonprofit organization formed to further and support higher education," according to a previous statement released by Keystone. The college's day-to-day operations and academic mission would remain essentially unchanged under that move, the college has said.
Those submissions appear to have influenced Middle States' decision.
“The new financial information is significant and bears materially on the financial non-compliance identified by" Middle States, the statement noted. It did not elaborate on that financial information.
As a result, Middle States on Thursday changed Keystone's status to "non-compliance show cause.”
The conditions of the updated status "will require Keystone to remain in frequent communication with [Middle States] and meet submission deadlines while maintaining regulatory compliance with the federal and state departments of education," the statement indicated. The complex substantive change review process will continue during this time.
“We are grateful for the careful attention that all of our partners have given to Keystone College,” said Tim Pryle, vice president of enrollment, institutional advancement, and marketing.
“We understand that there is still much work to be done. The recent news about the future state of higher education, not only in Pennsylvania but nationwide, only highlights the need for a shared commitment to affordable, accessible and accredited options for all students interested in pursuing a college degree," Pryle added. "Keystone remains committed to enhancing and building upon our 156-year legacy.”
