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Embattled Union Institute & University is facing fresh scrutiny from both federal and state authorities as its financial struggles continue.
The U.S. Department of Education recently required the institution to come up with a $12 million line of credit before Oct. 13 or lose access to federal financial aid, WCPO reported. The local ABC affiliate noted that such an action could prompt the small Cincinnati-based college to close abruptly.
The Ohio Department of Commerce’s Division of Industrial Compliance has also opened an investigation into Union Institute over wage complaints, the agency confirmed to Inside Higher Ed. A spokesperson noted the agency has received multiple complaints, two of which are being investigated.
“Given the two open complaints, we have requested wage records for all employees and are in the process of waiting for a records response from the Union Institute,” the spokesperson said.
Union Institute has been missing payroll for months and was evicted from its Cincinnati headquarters. It has also twice delayed the start of the fall semester due to financial issues.
Faculty members and students have called for the resignation of President Karen Schuster Webb and the entire Board of Trustees. In letters shared with Inside Higher Ed, both groups accused Webb and the trustees of leadership failures and a lack of transparency and demanded seats on the board as they seek to right the ship. Faculty have also called for a forensic audit by an outside party to probe the college’s financial and operational issues.
Webb did not respond to a request for comment from Inside Higher Ed.
