Birmingham-Southern College (BSC), a 168-year-old private liberal arts institution, announced on Tuesday that it will cease operations by the end of May after failing to secure a $30 million loan from the state.
BSC stated that the college’s board of trustees voted unanimously to close it down after a bill designed to amend legislation that established the loan program lacked support in the Alabama House of Representatives.
“This is a tragic day for the College, our students, our employees, and our alumni,” the board’s chair Rev. Keith D. Thompson said in a press release. “But it is also a terrible day for Birmingham, for the neighborhoods who have surrounded our campus for more than 100 years, and for Alabama,” he added.
BSC President Daniel Coleman said that “the college has exhausted every option” to obtain the loan through the Distressed Institutions of Higher Learning Revolving Loan Fund, which was signed into law by Alabama Gov. Kay Ivey in June 2023.
“The original Act put the State Treasurer in charge of the program, for which BSC met the statutory qualifications. After months of delay, the Treasurer denied the loan in October 2023,” the college stated.
Sens. Jabo Waggoner and Rodger Smitherman introduced a bill to amend the 2023 Act on Feb. 6, which will move the administration of the loan program to the Alabama Commission on Higher Education.
The bill will also add a layer of review to ensure the state’s position, set the loan terms, and establish a specified time frame for approval or denial, according to the institution.
The Alabama Senate approved the bill on March 5, but subsequent conversations with House leadership confirmed that it lacked support to move forward.
“Our hearts go out to the entire Birmingham-Southern community,” Stacey LaDew, a commissioner at the Southern Athletic Association, said in a press release following the announcement.
“BSC has been an invaluable partner to this conference since its inception, and we are deeply saddened by today’s news. As a conference, we will continue to support the Panthers staff and student-athletes through this difficult time,” Ms. LaDew stated.
BSC stated that it has already begun planning for students who will need to transfer to other institutions, but that their BSC scholarships will not be transferable.
“We are working with other institutions—including those in the Associated Colleges of the South as well as some in-state colleges and universities—on agreements that will help maximize the transfer of credits to keep them on track,” Provost Dr. Laura Stultz said.
BSC stated that senior students planning to complete their BSC degrees this year will be able to complete course requirements online or via agreements with other institutions. It also pledged to help all employees affected by the closure.
