The private institution may have averted closure through a state lifeline, but questions remain about its financial plan. A potential lifeline came in June, when Gov. Kay Ivey signed a bill that makes institutions like Birmingham-Southern eligible for a state loan. The state legislature funded the new program at $30 million. It’s possible that a loan from the government could save Birmingham-Southern College. But it’s unclear so far what the institution’s next steps will be if it receives the loan, and exactly how it will address the issues that led to its years of financial hardship.
As higher education faces increasing pressures, it’s possible even more institutions will pursue similar arrangements.
