Seminaries Impacted by Economic Downturn

According to an article appearing in USA Today last week, the struggling economy is having a serious impact on the nation's seminaries and Bible colleges. Among the 175 "free-standing" institutions in the Association of Theological Schools, 39 percent were "financially stressed," with less than a year's worth of spendable assets. That's up from 26 percent a year earlier.

Several factors have been suggested to explain the current crisis:

• Enrollments at ATS schools have dropped four percent since 2006.
• The Association for Biblical Higher Education says enrollments are also down at 60 percent of Bible colleges.
• Most Bible colleges or seminaries are not supported by large endowments.

"This crisis has precipitated thinking the unthinkable — mergers, selling property, transforming the school, moving the school — all these things are on the horizon," says Anthony Ruger, of Auburn Theological Seminary's Center for the Study of Theological Education.

In response, many schools are cutting programs, salaries, employee benefits and/or staffing levels, and more and more schools are offering Web-based options, including some that allow students to do all coursework online.

According to USA Today, these four schools have closed or will close in the near future:

• Salt Lake, Utah, Theological Seminary: Closing at the end of the current academic year because of declining donations.
• Vennard College, University Park, Iowa: Closed after an announcement in November citing low enrollments, rising costs and a mounting operational deficit.
• Pillsbury Bible College, Owatonna, Minn.: Closed in December; its campus is for sale for $6.9 million.
• Far North Bible College: This Assemblies of God school in Anchorage, Alaska, closed in December.