American International College (AIC) is at risk of probation and accreditation withdrawal, said its accrediting body, the New England Commission of Higher Education (NECHE).
AIC must show cause to the Commission in January 2027 to prevent probation and loss of accreditation.
According to a joint statement from AIC and NECHE, the college faces a deficit expected to total over $17 million in 2028, and access to over $11 million of its remaining funds is restricted.
"AIC has taken significant action to prioritize its financial sustainability, and has made considerable progress in strengthening the College’s long-term viability," said AIC President Nicolle Cestero.
She says the college remains hopeful as enrollment and retention rates increase and expenses are reduced through strategic-decision making. Measures include review of programmatic and operational infrastructure and additional community and donor engagement.
"We look forward to engaging with NECHE during this process and demonstrating AIC’s resilience, adaptability, and capacity to endure,” said Cestero.
AIC currently remains accredited and eligible for federal funding.
AIC is not the first Western Massachusetts institution to face financial struggles. In April 2026, Hampshire College, located in Amherst, closed after years of declining enrollment, debt, and stalled land development, NEPM reported.
Hampshire College was first questioned by NECHE in 2019, but successfully proved to keep its accreditation. However, the liberal arts college decided to close its doors after the Commission demanded it prove that it should keep its accreditation again in 2026.
