Where Have All the Private 2-Year Colleges Gone? Once numerous, most have either closed, merged, or switched to 4-year status By AUDREY WILLIAMS JUNE Banner Elk, N.C Lees-McRae College had a simple mission when Mary W White came to teach here 25 years ago The two-year institution took students fresh out of high school and readied them for four-year colleges ALSO SEE: CHART: The Disappearing College "We knew who we were and what we were all about," Ms White says of the private liberal-arts college, which is nestled in the mountains of western North Carolina "LeesMcRae was a place you came to so you could go somewhere else." But after decades of helping to fill baccalaureate institutions with Lees-McRae graduates, the college decided that holding on to its students for another two years was the key to its survival which was threatened, in part, by public community colleges that could offer associate degrees for much less money Competing would be easier, the trustees reasoned, if Lees-McRae could market itself as a small, private four-year institution in an area where the closest four-year college Appalachian State University is a public university with nearly 13,000 students Lees-McRae made the switch in 1990 Ms White, an associate professor of English, says that she wasn't "100 percent convinced" that the switch was necessary But in retrospect, she thinks that Lees-McRae made the right move "Eventually, we would have had to it," she says "It's tough to be a private two-year college now." Over the years, many other private junior colleges have reached the same conclusion According to the American Association of Community Colleges, there are now 148 private two-year institutions, down from more than 300 in 1945 The association's numbers include proprietary colleges and independent graduate institutions Most experts put the number of private liberal-arts junior colleges at fewer than 70 Many of the institutions were started by churches or individual educators and were viewed largely as finishing schools for high-school graduates Support for two-year private colleges started to wane in the mid-1940s as public community colleges began opening in record numbers to serve World War II veterans who were using the G.I Bill to pay for their educations Hurt by Community Colleges As community-college systems grew, they chipped away at the enrollments of private junior colleges In the 1960s alone, about 100 private two-year colleges closed or began offering bachelor's degrees, their finances too shaky for them to make it solely on twoyear programs Recently, as the national economy has slowed, still more private junior colleges have given in to the times Competition for students has become more intense at the same time that students are demanding more from colleges: cutting-edge technology, resort-grade residence halls, strong links to employers Many small colleges find providing such services difficult, especially private two-year institutions with limited endowments And an associate degree doesn't carry the same weight with students and their potential employers that it once did A few private junior colleges have merged with other institutions, and at least one more such arrangement is in the planning stages Springfield College, in Illinois, expects to merge with nearby Benedictine College, a four-year institution Some institutions that have traditionally had two-year programs, like Indiana's Holy Cross College, now award both bachelor's and associate degrees Mitchell College, in Connecticut, and Lasell College, in Massachusetts, are former two-year colleges that have become four-year institutions within the past 15 years Other two-year institutions, such as Woods College, in Mississippi, have simply shut their doors Some two-year institutions have managed to carve out successful niches for themselves But the trend is clear "They're really an endangered species," says James E Samels, chief executive of Education Alliance, a national higher-education consulting firm that has helped some colleges decide whether to remain two-year institutions "I think the time has come when trustees are asking tough questions about long-term viability and then making some tough decisions." Officials at Keystone College, a former two-year institution in La Plume, Pa., were determined to shed that endangered-species-list image In the mid-1990s, the college had a flagging enrollment, a deficit of $1.3-million, and no money to restore its aging campus, which covers 280 acres in hilly northeastern Pennsylvania What's more, the college faced expanding competition from other nearby two-year institutions, both private and public Edward G Boehm Jr was hired as president in 1995 to carry out the Keystone trustees' plan to offer four-year degrees "I was committed and determined that we would become a baccalaureate college," he says "I knew, with so many fine two-year opportunities in our area, that we would no longer be able to move in that direction and be competitive." Faculty members accepted a three-year freeze on tenure and salaries which also included the pay of administrators and staff members so that the college could balance its then-$10-million annual budget Professors also agreed to teach two classes more than their normal loads The alternative, trustees said, was to declare bankruptcy "We all knew that this was serious," says Charlotte Ravaioli, who was chairwoman of the faculty senate at the time and is now vice president for academic affairs and dean "We were very nervous about the future of the college." Keystone issued about $11.2-million in bonds over five years to pay down debt, cover years of deferred maintenance, and upgrade facilities In the spring of 1998, it won approval from state officials to offer two bachelor's degrees, a number that has since grown to 13, in such areas as accounting, human-resource management, and criminaljustice administration The college has gradually hired faculty members with terminal degrees in their fields to teach in these programs Enrollment, at 488 when Mr Boehm arrived, has risen to 1,079 full-time students this fall In the meantime, Keystone has scaled back its associate-degree programs from 37 to 17 Next year, 45 percent of the students will graduate with bachelor's degrees, but the college doesn't plan to dump its two-year offerings "I think our revitalization was directly related to our decision to become a baccalaureate college with two-year opportunities," Mr Boehm says For Chester College of New England, formerly known as White Pines College, switching from a two-year to a four-year program in 2001 meant dropping its associate degrees as quickly as possible The college, located in rural Chester, N.H., has revised its mission to focus on bachelor-of-arts programs with an emphasis on the visual and language arts That priority is reflected in the degrees it now offers, which include photography, studio arts, and graphic design A two-year degree in liberal studies remains, but officials are not certain that it will be offered for much longer, says William A Nevious, president of the college Only four of the college's 176 students are enrolled in the associate-degree program today The name change, too, was crucial to the changeover strategy "It would have been too difficult to try to get people to think about White Pines College as a four-year college as opposed to a two-year college," Mr Nevious says "We're going after a target market that matches our mission We're definitely looking at those very strong, creative students who want a four-year degree." Since 2000, when the college began its transition, enrollment has tripled, and the budget, now at a lean $3.2-million, has been balanced 'Unique Advantage' Experts say the private two-year colleges that have the best chance of surviving are those offering programs that aren't widely available "They really have to look at what can they advertise or market as their unique advantage," says Richard Alfred, a professor of higher education at the University of Michigan's Center for the Study of Higher and Postsecondary Education "They really have to be able to justify their cost They have to tell students how they will connect them to the outside world." Tuition at St Catharine College, a two-year institution in St Catharine, Ky., is about $3,300 per semester for most programs A nearby public community college charges about $900 William D Huston, president of St Catharine, knew when he arrived, in 1997, that the college needed a specialty that would attract students despite the price difference With health-care workers in short supply, the college has expanded its mission to include a liberal-arts core with an emphasis on health science St Catharine now has six two-year health-science programs including one, sonography, that is among only nine in the country accredited to give instruction in three tracks: cardiac, abdominal, and vascular Mr Huston saw the new focus as a way not only to produce health-sciences graduates for local hospitals, but also to give the college the attractive specialty it sought Enrollment for the fall of 2002 was 738, up from 180 in 1997, and projections call for 800 students this year Next fall, the college in yet another move to distinguish itself expects to begin enrolling students in a couple of four-year degree programs that aren't available anywhere else in Kentucky: a bachelor of arts in management and supervision, and a bachelor of science in health services Eventually, St Catharine which the president says will continue to award associate degrees would like to offer four-year degrees in education and nursing as well Mr Huston, who grew up in Kentucky, remembers when there were 15 private two-year colleges in the state St Catharine is the only one left Bucking the Trend Spartanburg Methodist College uses its singular status as a marketing tool The college is the only private two-year institution in South Carolina, and "we celebrate that," says Dan L Philbeck, dean of admissions and financial aid The college shares the city with three baccalaureate colleges, one technical institution, and one chiropractic college, he notes In the early 1990s, Spartanburg Methodist considered becoming a four-year institution, but decided not to "We just felt that we couldn't compete on a four-year level," Mr Philbeck says So it continues to award associate degrees in arts, science, criminal justice, and information management It thrives on a combination of enthusiastic marketing and fouryear-style offerings Among them are scholarship programs, 13 intercollegiate athletics teams, an array of extracurricular activities, and residence halls that hold 550 students Enrollment is at 750, prompting officials to contemplate expansion And an average of 91 percent of Spartanburg Methodist students have gone on to four-year colleges in recent years "Our main goal is to get their first two years of college under their belt and then get them where they want to go," Mr Philbeck says "I think the two-year concept will continue to work for us." On the Edge Still, for every two-year success story, there are several colleges whose survival is tenuous For instance, trustees at Mary Holmes College are deciding whether to keep the doors open at the financially ailing institution in West Point, Miss Mary Holmes trustees voted last month to suspend operations for the fall semester at the 111-year-old college, according to a Presbyterian News Service report Mary Holmes, a historically black private junior college, is burdened with about $2.5-million in debt after years of falling enrollment The institution, which is affiliated with the Presbyterian Church (USA), was stripped of its accreditation in December 2002, mostly because of its financial troubles An appeal to its accreditor, the Southern Association of Colleges and Schools, was unsuccessful As a result, the institution was not eligible for the federal money that provided financial aid to its roughly 250 students And it faces losing the financial support it received annually from the church Mary Holmes is known for sending students on to nearby Mississippi Valley State University and Jackson State University Trustees have said that filing for bankruptcy is an option Learning Curve Even for two-year colleges that make the switch to four-year status, success does not exactly come overnight When Lees-McRae became a four-year college, in 1990, the marketing of its new image wasn't well thought out, and was further muddied by the college's continuing to award two-year degrees until 1994 A steep enrollment decline followed the transition Enrollment, which had peaked at 850 in 1990, fell to 470 in 1998, with the college's budget deficit hovering around $3-million At that point, the trustees after scrapping a plan to sell the college hired Earl J Robinson as president The board used the college's $13-million endowment as collateral to secure a line of credit to pay operating expenses and to revamp its marketing strategy to make prospective students aware of its new offerings "Ten years after we made the switch, people would say, 'Lees-McRae? Isn't that the twoyear school up in the mountains?'" Mr Robinson says "I went everywhere within a 60-to-75-mile radius to preach that we had changed." Now it appears that people have gotten the message Enrollment this fall is up to 750 on the main campus, in Banner Elk, and to 225 full-time students on four branch campuses at nearby community colleges, established beginning in 1997 At the satellite campuses, community college graduates can take junior- and senior-level classes to get bachelor's degrees from Lees-McRae in elementary education, business, criminal justice, and nursing In the 2004 fiscal year, Mr Robinson expects the college to have about a $300,000 surplus, with a $14-million operating budget A five-year effort to raise $18.75-million, which began in 1998, surpassed its goal in four years and has been extended to $26million And construction will soon begin on a $3.9-million residence hall, which will hold 80 students Within five years, Mr Robinson hopes to have 1,100 students taking classes on the 400acre main campus, with another 500 students in the institution's satellite programs Meanwhile, Ms White, the English professor, talks of how teaching juniors gave her a much-needed break from "teaching freshman comp over and over again." She enjoys the extra time she now gets to spend with students as well as the payoff "We used to all the hard work and someone else reaped the benefits," she says "Now we're the steppingstone to a career or a graduate degree." http://chronicle.com Section: Money & Management Volume 50, Issue 3, Page A23 Easy-to-print version E-mail this story ... at the University of Michigan's Center for the Study of Higher and Postsecondary Education "They really have to be able to justify their cost They have to tell students how they will connect them... Spartanburg Methodist students have gone on to four-year colleges in recent years "Our main goal is to get their first two years of college under their belt and then get them where they want to go," Mr...Hurt by Community Colleges As community-college systems grew, they chipped away at the enrollments of private junior colleges In the 1960s alone, about 100 private two-year colleges closed or