Anna Maria College to shut down at end of semester

A second Massachusetts liberal arts college this month has announced it will close, underscoring the mounting financial strain facing small, tuition-dependent schools.

Anna Maria College in Paxton said Thursday that it will shutter at the end of the semester after what officials described as an "exhaustive review" of its finances. The decision follows a similar announcement earlier this month from Hampshire College in Amherst.

"Like many small, tuition-dependent institutions, Anna Maria has faced structural challenges driven by declining enrollment and rising costs in the years following the pandemic," the college said in a statement.

School officials pointed to a series of cost-cutting and revenue efforts over the past year, including reducing staffing and operating expenses by more than $2 million, resetting enrollment targets, and pursuing new income streams. While the college reported signs of improvement — including a 7.5% increase in spring enrollment and stronger-than-expected fundraising — its most recent audit raised significant concerns about its long-term viability.

That audit included a "going concern" qualification, signaling substantial doubt about the college's ability to continue operating. The designation led to new restrictions on its administration of federal financial aid, compounding existing pressures. Combined with a Financial Assessment and Risk Monitoring notice from the Massachusetts Department of Higher Education and additional scrutiny from its accreditor, the New England Commission of Higher Education, officials said there was "no viable path forward."

Founded in 1946 by the Sisters of Saint Anne as a women's college, Anna Maria later became coeducational and operated for decades as a private Catholic liberal arts institution.

"The Board of Trustees reached this decision only after pursuing every realistic alternative. We are heartbroken," Board Chair David Trainor said in a statement. "The legacy of the Sisters of Saint Anne, and of every faculty member and staff person who carried their spirit forward, will endure in every graduate this institution has ever produced."

Graduating seniors will be able to complete their degrees and participate in commencement, while other students will be offered transfer pathways through agreements with partner institutions. The college said it will host transfer fairs both on campus and virtually.

Anna Maria's closure reflects a broader and accelerating trend in Massachusetts and across the country, where small liberal arts colleges are struggling to adapt to shifting demographics and economic realities. A shrinking pool of college-age students, increased competition from larger universities and online programs, and growing skepticism about the cost of a degree have put sustained pressure on enrollment — the primary revenue source for many of these institutions.

In recent years, a number of similarly sized colleges have merged, cut programs or shut down altogether. For schools with limited endowments and heavy reliance on tuition, even short-term dips in enrollment or unexpected financial constraints can quickly become existential threats, leaving administrators with few options beyond consolidation or closure.