31-05-2025
Middle States to approve Keystone College's request to merge with nonprofit
The Middle States Commission on Higher Education accepted Keystone College's request to merge with a Washington, D.C.-based nonprofit, which an official of the financially struggling institution called 'an important piece of the process.'
The commission acknowledged it received the 156-year old college's complex substantive change request Thursday. The request includes the college's merger with the Washington Institute for Education and Research, or WIER, as well as a change in its legal status, form of control and ownership within the college's scope of accreditation. The changes were effective Friday.
Commission officials noted Thursday that the state Department of Education provided written evidence of required approvals.
The college in La Plume Twp. in Lackawanna County and Factoryville in Wyoming County will remain accredited following the merger.
Keystone officials have been working for more than a year on an agreement with WIER, founded in 2023 by Ahmed Alwani for the purpose of funding, promoting and supporting postsecondary education. In March 2024, Keystone and WIER mutually agreed to discontinue previous arrangements for a potential alliance. But in August, WIER inked a deal to merge with Keystone after several months of negotiations.
The agreement will merge the college's operations under a subsidiary of WIER while allowing Keystone to continue operations under its current educational mission.
As part of the change, the commission is requiring officials to provide the following information by Sept. 2:
• The updated status of the complex substantive change.
• Written evidence of review, including approval of the transaction from all outstanding required licensing, regulatory or other legal entities, including the state attorney general and the United States Department of Education.
• Evidence of a comprehensive financial planning process, multiyear budget, annual independent audit verifying financial viability and internal controls, and documented funding base adequate to support the educational purposes and ensure financial stability, including a financial development plan and resources from any related entities.
• Planning that integrates goals for institutional effectiveness and improvement, including overall institutional improvement and the results of institutional assessments as related to the complex substantive change transaction and efforts to expand international recruitment.
• An update on the status of recruiting and hiring a qualified chief financial officer.
• Evidence of the status of the institution's membership in the National Council for State Authorization Reciprocity Agreements and compliance with all membership requirements.
• Evidence of the implementation of a written conflict-of-interest policy.
• A clearly articulated and transparent governance structure that outlines roles, responsibilities and accountability for inclusive decision making by each constituency, including the institution's legally constituted governing body and any related entities, including any updates to the college's Guide to Governance and Policy.
Thursday's announcement is the latest positive development for Keystone. In late February, commission officials said they received financial information they had been looking for, including a letter from the U.S. Department of Agriculture and the college's new ownership structure request, none of which was available when the commission notified the college in November that its accreditation was being withdrawn. The commission formally accepted Keystone's appeal in December, and the college won't appeal the commission's action.
As a result, the commission changed the college's status from 'accreditation withdrawn under appeal' to 'non-compliance show cause.'
The positive news came after a difficult time for the college last year. In April 2024, the commission ordered the college to prepare a teach-out plan that would allow students to complete their education elsewhere in the event of a closure. College officials also cut 29 positions and placed an administrator on leave.
'Keystone is very grateful for this latest action by Middle States as it is another important piece of the process that we have been discussing with respect to the merger with Washington Institute for Education and Research (WIER) and the future of Keystone College,' Tim Pryle, Keystone's vice president of enrollment, institutional advancement and marketing, said in an email Friday.
The commission will conduct a complex substantive change site visit within no more than six months, and at the same time as a visit showing why Keystone's accreditation shouldn't be withdrawn.
Its announcement noted the commission reserves the right to rescind the action if additional information is revealed that might affect its decision or if the change isn't implemented within a year.
In addition, the commission stated the college isn't required to implement a teach-out plan, and the U.S. Department of Education removed the college from 'heightened cash monitoring' status.
The college is required to demonstrate by Sept. 2 why its accreditation should not be withdrawn.
