Keystone College: Navigating Challenges and Charting a Course for the Future
Keystone College, a private non-profit liberal arts institution with campuses in Lackawanna and Wyoming counties, has faced a period of significant uncertainty. This article explores the challenges the college has encountered, the strategies implemented to address them, and its vision for the future.
A College in Transition: Rebuilding While Afloat
Tim Pryle, Keystone College’s vice president of enrollment, institutional advancement, and marketing, aptly describes the college's current situation as "rebuilding a boat while it's in the water." This analogy captures the urgency and complexity of the task at hand. The college cannot afford to pause operations while undergoing significant changes; it must adapt and evolve in real-time to ensure its continued viability.
Since as far back as 2015, the college has faced economic challenges. Keystone laid off faculty and staff members and condensed or eliminated programs, like its culinary arts program. The COVID-19 pandemic only worsened enrollment at not just Keystone, but institutions of higher education across the nation. Students were either set back in their college studies or deterred from enrolling in college altogether.
Addressing Financial Realities and Seeking Partnerships
Keystone had been on a Department of Education watchlist for more than a decade because of its financial struggles. President John Pullo, who previously served on Keystone’s board, explained that the college reached a point where revenues matched expenses, leaving no additional capital for growth. To address this, Keystone began seeking a "growth partner."
In March, Keystone partnered with the Washington Institute for Education and Research (WIER) and entered into a “membership interest transfer agreement.”
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Then the deal fell through. Months later, Keystone again signed a letter of intent with WIER. In June, the college cut 29 faculty and staff positions to try and reduce costs, a move estimated to save $3.5 million a year.
Accreditation Challenges and a Path Forward
A significant hurdle for Keystone was the Middle States Commission on Higher Education's (MSCHE) decision to withdraw the college's accreditation. Middle States is an accreditor recognized by the United States Secretary of Education. The organization ensures students and the public of the educational quality for its over 500 institutions of higher education.
The commission planned to pull the college’s accreditation by Dec. Leaders had a hearing with Middle States and felt optimistic going into it.
Pullo said the accreditor had a different view and withdrew accreditation at that time.
The accreditor based its vote on Keystone’s failure to provide evidence showing compliance with a handful of requirements around ethics and integrity, planning and resources, and governance and leadership. MSCHE’s November notice came roughly two months after Keystone struck an agreement to become a subsidiary of the nonprofit Washington Institute for Education and Research. That was the second agreement between the two entities after an earlier one unraveled in the spring. Following the scrapped merger, MSCHE asked Keystone to file “substantive change request for institutional closure” paperwork. Indeed, MSCHE said in April that Keystone faced risk of imminent closure.
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This put the college in a precarious position, as accreditation is essential for accessing federal funds that many students rely on to pay for their education. Between 50 and 60% of students are eligible for Federal Pell grants, which are given to students who display exceptional financial need. That percentage is higher than the state average, said Pullo.
However, Keystone filed an official intent to appeal with MSCHE on Dec. 12, setting the process in motion. MSCHE had previously set a Dec.
MSCHE is aware of institutional and media reports regarding Keystone College. In light of such reports, it has become necessary for the Commission to correct misleading information in accordance with the Commission’s Communication in the Accreditation Process Policy and Procedures, Procedures Section VII. It has been reported that the institution’s substantive change request for institutional closure is “a procedural step” that enables institutions to implement a teach-out plan. However, the institution has reported potential imminent closure to the Commission, and for that reason, the institution has been asked to submit the substantive change for institutional closure. On April 25, the Commission acted to acknowledge receipt of Keystone College’s submission of a substantive change request for institutional closure and to note that the institution is in danger of imminent closure. Keystone College is obligated to plan for orderly closure. The Commission also took action on April 25, to require the institution to show cause by August 1. The Commission had previously acted on April 4, to require that the institution complete and submit for approval a comprehensive, implementable teach-out plan and agreements in accordance with the Commission’s in accordance with the Commission’s Teach-Out Plans and Agreements Policy and Procedures. The Commission’s Teach-Out Plans and Agreements Policy and Procedures requires institutions to notify the Commission as soon as they are aware of a potential circumstance requiring a teach-out plan, in addition to notifying the appropriate state higher education entities, the United States Department of Education (USDE), and all relevant stakeholders (currently enrolled and prospective students, faculty and staff, other stakeholders, and the public) as soon as possible. While the Commission is aware of continued negotiations by Keystone College with a potential partner, the imminent closure remains a concern as any transactions under the Commission’s complex substantive change policy, procedures, and guidelines can take up to a year to review. In addition, institutions in non-compliance status require an additional procedural step in that they must obtain permission from the Commission to submit a complex substantive change request in accordance with the Commission’s Substantive Change Policy, Procedures, and Guidelines, Complex Substantive Change Procedures Section III. D. 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 expects its member institutions to honor standards for accreditation, requirements of affiliation, policies and procedures, and federal regulations in planning appropriately for changes affecting students, institutional mission, goals, programs, operations, and sites.
La Plume, Pa. - Keystone College has received notification from its accreditor, Middle States Commission on Higher Education (MSCHE), that, effective February 27, MSCHE has “placed the institution into the status of non-compliance show cause” which is a change from the previous status of “accreditation withdrawn under appeal.” Additionally, since the College remains accredited while on show cause, this action eliminates the need for the pending appeal of the MSCHE adverse action. All of the conditions placed on Keystone during the appeal, including that the College could not market to, recruit, or enroll new students are no longer in effect. A request for reconsideration to withdraw the MSCHE adverse action and the conditions set during the appeal was submitted by Keystone on February 4. That request included new financial information that was not available in writing prior to the adverse action plus the College’s commitment to submit the complex substantive change for ownership given the signed merger agreement that is still in place with the Washington Institute for Education and Research (WIER). In the February 27 action, MSCHE noted that the new financial information and the complex substantive change request were not available at the time of the November 21 Commission action. “This recent action by Middle States is welcome news to not only the Keystone community, but we feel the higher education community at large,” stated Keystone President John F. Pullo, Sr. “The process of saving and rebuilding a college in today’s higher ed landscape is very challenging and requires innovative approaches, open communication, and partnerships. The conditions of the non-compliance show cause status will require Keystone to remain in frequent communication with MSCHE and meet submission deadlines while maintaining regulatory compliance with the federal and state departments of education. “We are grateful for the careful attention that all of our partners have given to Keystone College,” said Tim Pryle, Vice President of Enrollment, Institutional Advancement, and Marketing. “We understand that there is still much work to be done. The recent news about the future state of higher education, not only in Pennsylvania but nationwide, only highlights the need for a shared commitment to affordable, accessible, and accredited options for all students interested in pursuing a college degree.
Until late this week, Keystone was accredited but was required to show Middle States why its accreditation should not be withdrawn, which it was slated to do next month. “This is the best outcome that Keystone could have received and one which we have worked very hard to secure,” Keystone President John Pullo said in a statement issued Friday. Keystone is required to submit a monitoring report by Sept. “Today’s notification from Middle States is a remarkable moment for the entire Keystone College community as it is an important affirmation of the work that President Pullo and so many others have put into this journey,” Tim Pryle, the college’s vice president of enrollment, institutional advancement and marketing, said in a statement Friday. “While we are obviously focused on and excited for Keystone, we understand what this moment means for other schools like Keystone nationwide.
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Keystone College announced that the long-planned merger transaction with the Washington Institute for Education and Research (WIER), a nonprofit organization formed to further and support higher education, was completed on Friday afternoon, May 30, after all necessary steps in the process were successfully achieved. In his message to the College’s Trustees and campus community, President John F. Pullo, Sr., stated, “I am pleased to report that the merger transaction between Keystone and WIER was concluded on Friday, May 30, finally joining the College with its strategic partner after nearly a three-year journey that at times threatened the future of the College. The fact that we can make this announcement today is a testament to the remarkable commitment and trust that WIER, especially Dr. Those positive developments included an announcement on Thursday from the College’s accreditor, Middle States Commission on Higher Education (MSCHE), that it had reviewed and approved Keystone’s complex substantive change request; noting that accreditation will continue once the merger was finalized. “I am delighted and grateful to the entire Keystone team that we have finally reached this point. While we are dedicated to enhancing that mission, we are equally driven to being innovative with respect to the educational opportunities needed for today’s students in all areas, including online, international, and certifications,” said Dr. Tim Pryle, Keystone’s Vice President of Enrollment, Institutional Advancement, and Marketing added, “As we have stated many times throughout this process, the commitment to saving and rebuilding a college is exhaustive and must be done deliberately. This is a milestone moment worthy of celebration. However, we are all well aware of the task at hand. Prior to the announcement from Middle States, Keystone had secured approvals from its regulatory agencies, including the Pennsylvania Department of Education, the Pennsylvania Office of the Attorney General, and the United States Department of Education. Pullo concluded, “In addition to Dr. Alwani and WIER, I am sincerely grateful for the community’s continued support for Keystone.
Keystone's "Why": Access, Opportunity, and Personal Attention
Despite the challenges, Keystone's leadership remains committed to its core mission: providing access to quality higher education for students who may not otherwise have the opportunity. The college's enrollment is over 1,000 students. Keystone lost about 200 students last year.
Many of those students are the first in their families to go to college. Pullo described social mobility as the ability to advance economically and build wealth because of education and experiential learning along the way.
Pullo said Keystone occupies the “strata” of small, private nonprofit colleges, which is really the segment in the industry that's really the most vulnerable right now.
Keystone has a 13 to 1 student-to-instructor ratio. Pullo said, “You’re a name, not a number.”
Outside of class, students have many ways to express themselves. There’s 30 student clubs, 18 Division III varsity athletic teams, including its championship baseball team; intramural sports, music programs and art.
The wooded college campus is lined with buildings of all different sizes and shapes. Some even look like family homes - because they were at one time. Pullo said faculty members lived on campus for years. Keystone’s last president, Tracy Brundage, lived in the 14-room Victorian meant for presidents called Hedgewood Home. There’s seven miles of community hiking trails and a 170-acre woodlands campus. A portion of that campus is serves as a nature preserve to honor professor Howard Jennings.
The South Branch of the Tunkhannock Creek meanders through the property where Keystone's Environmental Education Institute offers many educational experiences for grade school and college students and community members. The college is home to an apiary and a sugar shack where students tap the campus' trees and learn how to make maple syrup. There's also an observatory just seven miles from campus in Fleetville. Pullo said Keystone is known for the personal attention that is paid to students.
Pryle said Keystone adheres to the core principle of higher education institutions to educate individuals and get them to that next level. Keystone is fighting for the demographic of students that they serve at their price point are getting less and less opportunity, right? They're getting less and less options as you look at schools that are closing.
Pryle said their reality is that for Keystone’s population of students, a college degree will make a significant difference for them.
Adapting Programs and Embracing Innovation
Keystone has consolidated a number of programs and reduced the number of majors. The general studies program was retooled to target what Pullo calls “degree completers.”
Students are now enrolling into college at around 20 or 21, instead of 18 or 19 years old. They might have started college, then dropped out. Or held off on undergrad because of the pandemic.
Pullo said general studies also allows students to experiment in different areas of study.
They’ve also strengthened and accelerated their masters programs and added new programs and concentrations, like community mental health.
Keystone will continue one of its original missions, supporting veterans, and provide opportunities for learners at all stages of their lives. They’re also moving ahead with a $3 million renovation and expansion of the college’s library that will add a new front to the building and additional instructional and event space.
The college was awarded two $1 million Redevelopment Assistance Capital Program (RACP) grants from the state for the project. A Keystone College alumna also gave a generous $1 million bequest that will be used for the project.
Recruitment and Future Outlook
With Middle States reviewing the change of ownership, the college can once again attract students.
Keystone couldn’t recruit students for the last three months. Pullo says they have to rewind that recruiting machine.
They’re looking to recruit international students and online learners as well as students from outside of the region.
Pryle said their messaging and outreach can’t be a blanket approach. They need to think about different markets. For example, in Northeast Pennsylvania it might be about rebuilding but that message could be different in the Allentown and Philadelphia markets.
“The message is, we're open, we're accredited, we're growing, we're reinvesting in the college. We're rebuilding the college. And this has always been a great place to come, come join us,” added Pullo.
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