Updated Statement on the University of the Arts

The Middle States Commission on Higher Education (MSCHE) is aware of institutional and media reports regarding recent Commission actions for the University of the Arts. In light of such reports, it has become necessary for the Commission to provide accurate information in accordance with the Commission’s Communication in the Accreditation Process Policy and Procedures, Procedures Section VII. H.

It has been reported that the University of the Arts closed as a result of the Commission’s adverse action to withdraw accreditation. This is inaccurate. On May 29, 2024, the institution shared with the Commission its imminent closure, due to a cash flow issue, prior to and independently of the Commission’s immediate adverse action to withdraw accreditation.

It was initially also reported through various mechanisms, including communications from the President and Chair of the Board of the institution, that the campus community, including students, would have been notified of the closure; however, “the Middle States Commission on Higher Education elected to withdraw UArts’ accreditation and announce it before we could communicate with you.” The Commission’s President Heather F. Perfetti advised the President of the University of the Arts to notify constituents immediately, prior to the Commission’s withdrawal of accreditation, and reminded her that any action by the Commission would be public on May 31, 2024. As a result, President Perfetti asked the institution to correct the statement it released, and the edited version of that statement from the institution now appears online without that reference.

For clarity on timing, the Commission immediately requested a supplemental information report due May 30, 2024, at 12:00 p.m. ET, requiring that the institution provide (1) details on how and when the institution became aware of the cash flow issue; (2) evidence of the current cash flow state; (3) copy of the latest audited financial statements; (4) evidence of the institution’s ability to meet current and future payroll obligations; (5) details on the pending donation; (6) any investigation internal or external related to the cash flow issue; (7) evidence of governing board reporting related to institutional finances, including copies of minutes for meetings held within the last year; (8) implementation of the academic calendar, including the status of the summer term and 2024-2025 academic year; (9) drafts of communications and press releases regarding the status of the institution; and (10) evidence that the institution has notified the Pennsylvania Department of Education (PDE) and the United States Department of Education (USDE). The institution missed the 12:00 p.m. ET deadline, and the information received was insufficient.

The Commission has required the institution to complete and submit for approval, by June 7, 2024, a comprehensive, implementable teach-out plan and signed teach-out agreements with appropriate teach-out partner institutions to provide for the equitable treatment of students to complete their education or transfer to another institution. The teach-out plan must also designate a final repository for the institution’s records, including, but not limited to, student transcripts. The Commission will host a meeting with prospective teach-out partners on June 6, 2024. We appreciate the many institutions outreaching to the Commission to support our students. Institutions interested in participating can contact communications@msche.org to register.

The Commission will host an informational session and attempt to answer questions that students and others may have. More information will be posted at the Commission’s Frequently Asked Questions (FAQ) resource for the University of the Arts.

The Commission centers students in its work and is committed to fulfilling its responsibilities within the regulatory triad and ensuring the highest quality of service to students, institutions, and the public. The Commission continues to work directly with the United States Department of Education (USDE) and the Pennsylvania Department of Education (PDE).

“Our Commission does and can help institutions close well and with integrity; however, we cannot do it with a day’s or week’s notice,” said President Perfetti. “It is critical that institutions and any attorneys and consultants working with them understand the expectations of this Commission. This is terribly frustrating for everyone involved but especially our students.”

The Commission will continue to post any updates at www.msche.org, including through the FAQ resource for this institution.

Updated June 5, 2024