Anna Maria College, a longstanding Catholic institution in Paxton, Massachusetts, has announced its closure at the end of the Spring 2026 semester, marking the end of an 80-year legacy amid unrelenting financial pressures. The Board of Trustees made the difficult decision after years of battling declining enrollment, mounting debt, and rising operational costs, despite recent gains in student deposits and fundraising. This abrupt news has left students, faculty, staff, and the local community reeling, highlighting the precarious state of many small private colleges across the United States.

The college, founded in 1946 by the Sisters of Saint Anne, began as a women's college in Marlborough before relocating to its scenic 260-acre campus in Paxton near Worcester. It evolved into a co-educational liberal arts school known for programs in nursing, criminal justice, fire science, social work, business, and the humanities, serving a diverse student body including many first-generation and working-class learners. With around 1,200 undergraduates in recent years, Anna Maria emphasized community, faith, and service, but structural challenges proved insurmountable.

📉 A History of Financial Strain

The roots of Anna Maria College's closure trace back to prolonged financial difficulties exacerbated by the COVID-19 pandemic. For fiscal year 2025 (ended June 30, 2025), the college reported operating revenues of approximately $32.9 million, slightly above expenses of $32.7 million. However, net assets plummeted from $16 million in 2024 to $9.2 million, with operating losses contributing to a $6.8 million decline. Long-term debt stood at $18.4 million, secured by college assets and maturing through 2040, while the endowment hovered at just $1.35 million—mostly restricted for scholarships and specific programs.

Leadership under President Sean J. Ryan implemented aggressive cost reductions, slashing staffing and operations by over $2 million annually. Fundraising exceeded targets, bolstered by a $5 million anonymous donation. Yet, these measures couldn't offset the 'going concern' qualification in the FY2025 audit, signaling substantial doubt about the institution's viability. Cash from operations was negative at $4.6 million, and liquidity remained tight at $1.6 million in readily available assets.

Declining Enrollment: The Demographic Cliff in Action

Enrollment at Anna Maria College dropped 16.6% from 2019 to fall 2024, falling from over 1,400 students pre-pandemic to 1,202. Spring 2026 saw a modest 7.5% rebound, with fall deposits tracking ahead, but it was too little, too late. As a tuition-dependent school (net tuition ~$14.3 million in FY2025), the college lacked the financial cushion of larger peers.

This mirrors a national 'enrollment cliff' hitting small private institutions hard. U.S. high school graduates peaked in 2025, with projections showing 15% fewer traditional college-age students by 2029. Reports estimate 25% of the 1,700 private nonprofits—over 440 schools—at risk of closure or merger in the next decade. In Massachusetts alone, Hampshire College announced closure earlier in April 2026, citing similar debt and enrollment woes.

Regulatory Red Flags and State Oversight

The Massachusetts Department of Higher Education (DHE) issued a Financial Assessment and Risk Monitoring (FARM) notice on April 10, 2026, stating it could not confirm Anna Maria had sufficient resources to operate for 18 months or meet student obligations. This triggered restrictions on federal aid. The New England Commission of Higher Education (NECHE) had warned in March 2025 of accreditation risks.

Under state law, flagged schools must develop contingency plans, including teach-out agreements. Anna Maria's board met bi-weekly to review finances, but regulators deemed progress insufficient. A full FARM notification outlined these concerns publicly.

Prioritizing Students: Transfer Pathways and Support

In a silver lining, Anna Maria secured teach-out partnerships ensuring seamless transitions. Pathway agreements with Worcester State University, Regis College, Springfield College, Bay Path University, Elms College, Fitchburg State University, and UMass Lowell guarantee admission, comparable aid, and credit evaluations—no transfer fees. Over 20 other schools, including Assumption University, Merrimack College, and Suffolk University, have expressed interest.

Transfer fairs are scheduled, starting May 2, 2026. Graduating seniors complete degrees for the May 9 commencement. Transcripts and records are preserved via partners; request via registrar@annamaria.edu. Federal loans qualify for closed-school discharge through the U.S. Department of Education or Massachusetts AG. International students get SEVIS transfer support, athletes retain NCAA eligibility. Deposits for fall 2026 are refunded, with counseling available.

• Guaranteed admission and aid matching at core partners
• Full credit transfer evaluation
• Virtual and on-campus transfer events
• Wellness support through semester end

Details at the official transition page.

Faculty and Staff Face Uncertainty

Around 150 employees face layoffs under WARN Act notice, with most employment ending in June 2026. Severance, COBRA health continuation, and unemployment documentation are provided. HR offers references and verification. Faculty expressed frustration over perceived false reassurances, given recent enrollment upticks.

This underscores job market challenges for higher ed professionals amid widespread cuts.

Heartfelt Reactions from the Community

Students described shock and devastation: "It's like our home is being taken away," one nursing major shared in interviews. Social media buzzed with nostalgia and policy calls for board accountability. Paxton locals mourn the economic anchor—AMC contributed to the rural town's vitality. Alumni pledged enduring pride in their degrees.

President Ryan conveyed "profound grief," thanking the Sisters of Saint Anne and stakeholders. Videos captured tearful vigils and packed advising sessions.

The Rising Tide of Small College Closures

Anna Maria joins a grim tally: 17 private nonprofit closures in 2023, accelerating into 2026. New England bears the brunt due to demographics and competition from public options and free community college initiatives. Nationally, the enrollment cliff threatens 4-5 closures yearly, displacing thousands.

Experts cite tuition discounting (often 50%+), over-reliance on internationals (capped post-2024), and stagnant aid. For analysis, see Higher Ed Dive's coverage.

Survival Strategies for Vulnerable Institutions

Successful peers merge (e.g., Bay Path expansions), pivot to online/niche programs, or secure endowments. Anna Maria's efforts—cost cuts, recruitment—fell short without scale. Policymakers eye aid reforms, consolidation incentives. For higher ed leaders, diversification and regional partnerships are key.

Photo by Ankara University on Unsplash

Outlook: Legacy Endures, Lessons Abound

As Anna Maria wraps operations by December 2026, its impact lingers through 20,000+ alumni. Displaced talent bolsters nearby schools like Worcester State. This closure spotlights urgent reforms: bolstering small colleges via state grants, demographic forecasting, and enrollment pipelines from community colleges.

Prospective students: Vet financial health via College Scorecard, IPEDS. Job seekers in higher ed: Explore resilient roles at faculty positions.