According to Forbes, Rider University is implementing severe financial cuts including a 14% pay reduction for all employees and eliminating 35-40 faculty positions, representing about 25% of its full-time faculty. President John Loyack announced the “March to Sustainability Plan” approved unanimously by the Board of Trustees on October 30, warning that without transformative steps, the university wouldn’t have sufficient resources to meet payroll before the current fiscal year ends in June. The private New Jersey institution was placed on probation by the Middle States Commission on Higher Education on October 30 due to its deteriorating finances, risking loss of accreditation that would cut off federal student aid. Rider ended FY 2024 with a budget deficit exceeding $21 million and faces immediate cash flow problems from enrollment shortfalls, lost credit lines, and bond rating downgrades.
The accreditation nightmare scenario
Here’s the thing about accreditation probation – it’s basically the educational equivalent of being on life support. When Middle States puts you on probation, they’re saying “prove you can survive or we’re pulling the plug.” And that plug? Federal financial aid. Without that, Rider would hemorrhage students faster than you can say “tuition refund.” The university now has until January 2026 to submit a monitoring report showing it can meet financial standards, plus they have to create a “teach out plan” – essentially a roadmap for how students would finish their education elsewhere if Rider collapses. That’s like an airline having to plan for where passengers would go if their planes stop flying. Not exactly confidence-inspiring.
Years of financial rot
This didn’t happen overnight. Rider’s been circling the drain for years, and frankly, it’s a case study in how not to run a university. Former president Gregory Dell’Omo oversaw this mess for nearly a decade, expanding programs and launching capital campaigns while the foundation crumbled. They tried selling Westminster Choir College, got tied up in legal battles, and now admit the proceeds from that sale are already spoken for to repay prior loans. So much for that financial lifeline. And current enrollment and retention numbers? They missed projections, adding to the immediate cash crunch. It’s like watching someone keep adding rooms to a house that’s sinking into quicksand.
What this means for education
Let’s be real – cutting 25% of your faculty isn’t just trimming fat. That’s amputating limbs. Students who thought they were signing up for a certain educational experience are going to find departments decimated, courses eliminated, and advisors gone. The remaining faculty will face heavier workloads with 14% less pay. Morale? I can’t imagine it’s great when you’re essentially being told “take a pay cut or we all sink together.” And for prospective students and families looking at Rider’s official website right now – would you commit tens of thousands of dollars to an institution that might not exist in two years?
The small college crisis
Rider’s situation should scare every small private college in America. This isn’t an isolated case – it’s a warning shot across the bow of higher education. Declining enrollment, rising costs, and massive debt are creating a perfect storm that’s already sunk several institutions. The fact that Rider’s leadership describes this as their “only option” speaks volumes about how desperate things have become. Their sustainability plan announcement tries to sound optimistic, but when you’re cutting this deep, you’re basically performing emergency surgery without anesthesia. The latest financial audit showing $7 million in issues just adds to the grim picture. The question isn’t whether more colleges will face this crisis – it’s how many, and how soon.
