Birmingham-Southern College Succumbs to Financial Struggles, to Close in May Despite State Aid Efforts

After facing insurmountable financial challenges and failing to secure state aid, Birmingham-Southern College will cease operations at the end of May, as announced by officials on Tuesday. The unanimous decision by the College Board of Trustees follows a stalled legislative effort to obtain a taxpayer-backed loan for the esteemed 168-year-old institution.

Chairman of the Board of Trustees, Rev. Keith D. Thompson, expressed deep regret over the closure, acknowledging its impact not only on the college community but also on the city of Birmingham and its surrounding neighborhoods, which have been intertwined with the institution for over a century.

The closure reflects a broader trend seen across small private colleges nationwide, grappling with declining enrollments and fierce competition from larger institutions. With around 1,000 students, Birmingham-Southern has long been a fixture on the west side of Birmingham, a key city in Alabama.

Years of financial strain, exacerbated by the 2009 economic downturn and compounded by accounting errors in the handling of federal student financial aid, have plagued the college. Moody’s Investors Service downgraded the college’s bonds due to revenue declines and heavy reliance on its endowment.

Efforts to secure financial aid from the state, including a loan program established last year, proved unsuccessful, with the recent legislative push failing to gain sufficient support. The closure not only affects the college itself but also raises concerns about the impact on the surrounding neighborhoods, given the substantial campus footprint.

Birmingham Mayor Randall Woodfin expressed disappointment over the closure, emphasizing the college’s significance as a community pillar and a producer of future leaders. Despite the setback, efforts are underway to facilitate credit transfers for affected students, ensuring minimal disruption to their academic progress.

Established in 1856 as Southern University in Greensboro, Alabama, the institution later merged with Birmingham College in 1918 to form Birmingham-Southern College, which has since played a significant role in the educational landscape of the region.”