Regulators will strip Bay State College’s accreditation

The for-profit college in the Back Bay has been under pressure for months to show accreditors that it has the resources and governance structure to provide students with a quality education.David L. Ryan/Globe Staff

The New England Commission of Higher Education said Monday it will withdraw Bay State College’s accreditation on Aug. 31.

NECHE’s decision means that after that date, students at the Boston school will not be able to access federal financial aid funds, and credits may not transfer to other institutions.

The for-profit college in the Back Bay has been under pressure for months to show accreditors that it has the resources and governance structure to provide students with a quality education. But in recent weeks, current and former instructors and students have raised a number of concerns about the college, ranging from billing issues to a lack of support from a short-staffed administration.

After a three-day campus visit in November, the commission voted Jan. 12 to withdraw the school’s accreditation. The decision followed the recent suspension of veteran’s benefits for new students and the US Department of Education’s decision to place Bay State on heightened scrutiny, which requires the college to front financial aid costs.

In a letter to the college outlining its decision, the commission said Bay State’s operating deficit for the most recent calendar year was $500,000 more than projected. It added that the college has a history of “dramatic enrollment declines in the face of overly optimistic projections.”

The college, which also has a campus in Taunton, failed as of Jan. 12 to finalize “even one” plan for any students or programs to wind down successfully, the commission said.

The college’s interim president, Jeff Mason, said in a letter to students Monday that Bay State’s board of trustees has voted to appeal the decision. The college has seven days to file an appeal.

“This is not the outcome we expected and, frankly, we are heartbroken,” Mason wrote in the letter obtained by the Globe.

Mason informed students, faculty, and staff at the end of December that the school was slashing its academic offerings and renegotiating its lease to reduce expenses.

The commission first placed Bay State on probation last spring for concerns related to its governance structure and institutional resources.

Mason, in his letter to students, said the college will “remain open minimally through the end of August.” Students scheduled to graduate in May or August will not be affected by NECHE’s decision, he added.

The college said it will work with students expecting to graduate after August on transferring to other colleges. Students also have the option of withdrawing for the current spring semester by Jan. 20 to receive a refund.

“We are in the process of arranging transfer agreements with several area schools,” Mason wrote. “Students may also choose to transfer to another college of their choice, as Bay State credits are and will remain transferrable to all colleges and universities.”