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Cincinnati Christian U. Will Shut Its Doors

By  Eric Kelderman and 
Dan Bauman
October 28, 2019
Cincinnati Christian U., besieged by accreditation problems and financial challenges, will close at the end of this semester.
Wikipedia
Cincinnati Christian U., besieged by accreditation problems and financial challenges, will close at the end of this semester.

Three months after Cincinnati Christian University was disciplined by its accreditor, the institution has announced it will close at the end of the fall semester.

A regional accrediting agency told the university in July that it had a year to “show cause” why it shouldn’t lose accreditation. Cincinnati Christian’s financial condition and governance lapses had put its status at risk. Without accreditation, the university would lose access to millions of dollars in federal student aid.

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Cincinnati Christian U., besieged by accreditation problems and financial challenges, will close at the end of this semester.
Wikipedia
Cincinnati Christian U., besieged by accreditation problems and financial challenges, will close at the end of this semester.

Three months after Cincinnati Christian University was disciplined by its accreditor, the institution has announced it will close at the end of the fall semester.

A regional accrediting agency told the university in July that it had a year to “show cause” why it shouldn’t lose accreditation. Cincinnati Christian’s financial condition and governance lapses had put its status at risk. Without accreditation, the university would lose access to millions of dollars in federal student aid.

We hope this letter finds you well! You may have heard by now that CCU has made the difficult decision to cease offering accredited degree programs following the Fall 2019 semester.

But instead of enduring that process, the university’s board announced on Monday that it would close its doors at the end of the semester.

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“We hope this letter finds you well! You may have heard by now that CCU has made the difficult decision to cease offering accredited degree programs following the Fall 2019 semester,” said an open letter to students, posted online on Monday.

“We are truly sorry to have to send this letter. CCU has been serving students for almost a century, and we view all of you as friends and family,” the letter said. It was signed by the university’s Board of Trustees.

Since 2015, the university has made a series of bold bets to try to reverse declining enrollment and tuition revenues. Those moves were among the reasons cited by its accreditor, the Higher Learning Commission, when it issued its dire warning in the summer.

With little planning, the university started a football program, laid off administrative staff and faculty members to cut costs, and revised its academic mission. But its retention and graduation rates suffered, the accreditor reported, while its fiscal condition continued to erode.

The university has now spent the entirety of its $4-million endowment, according to financial disclosures filed with the Internal Revenue Service. The institution owed nearly $6 million at the end of the 2018 fiscal year on a mortgage to Central Bank and Trust, which has claim to all of the university’s assets.

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The accreditor also found numerous conflicts of interest within the university’s governance structure. President Ronald E. Heineman is a former board member who was also appointed chief restructuring officer by the bank. That situation led Heineman to put the interests of the bank that had extended credit to Cincinnati Christian above the interests of the institution itself, the accreditor said.

Heineman, a local businessman, also has a troubled past, including having had to pay a $150,000 fine to the Securities and Exchange Commission. He also owes more than a million dollars in unpaid state taxes, according to Chronicle reporting.

The university’s closure announcement gives the institution’s nearly 700 undergraduates little time to choose a new college to continue their studies. In its letter to students, the university said it was seeking to finalize agreements with a dozen other colleges where students might be able to complete their degree programs.

An announcement on the university’s main web page did not mention that the campus would be closing. Instead it trumpeted a “historic partnership” with Central Christian College of the Bible to open an “extension site” in Cincinnati for students in ministry programs. Neither Cincinnati Christian nor Central Christian responded to requests for comment in time for publication.

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The board’s decision to “withdraw” from its accreditation will “greatly impact students and employees,” said the statement from the board’s chairman, Chris Hahn. But he managed to put a positive face on the demise of the 95-year-old university.

“This uniting of forces to gain ground for the future of the church does my heart good. I’m excited for our current and future students.”

Eric Kelderman writes about money and accountability in higher education, including such areas as state policy, accreditation, and legal affairs. You can find him on Twitter @etkeld, or email him at eric.kelderman@chronicle.com. Dan Bauman is a reporter who investigates and writes about all things data in higher education. Tweet him at @danbauman77, or email him at dan.bauman@chronicle.com.

A version of this article appeared in the November 8, 2019, issue.
We welcome your thoughts and questions about this article. Please email the editors or submit a letter for publication.
Finance & Operations
Eric Kelderman
Eric Kelderman covers issues of power, politics, and purse strings in higher education. You can email him at eric.kelderman@chronicle.com, or find him on Twitter @etkeld.
Dan Bauman
Dan Bauman is a reporter who investigates and writes about all things data in higher education. Tweet him at @danbauman77, or email him at dan.bauman@chronicle.com.
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