Hampshire College officials said they have reached an agreement "in principle" with a philanthropic partner to provide a loan that will support the wind down of campus operations.
The loans will supply "time and resources for the College to strategically plan for land sales that maximally meet our financial obligations, and to consider legacy and mission throughout that process," Hampshire College President Jennifer Chrisler said in a statement.
The school's board of trustees voted over the weekend to continue with the summer and fall teach-out as planned, she said.
"We expect the loan will be finalized next month following a short period of due diligence, at which point the College projects having adequate financial resources to complete the teach-out of academic programs through December 31, 2026," Chrisler said.
She said while the school cannot let up on moving towards successful land sales to fulfill their financial obligations, the new loan agreement enables Hampshire College to proceed with greater confidence in their plans.
"In the long-term, the loan also affords the opportunity to create future uses of the campus for purposes in line with the values of Hampshire College," Chrisler said.
She also warned the loan does does not guard against the potential challenges of a teach-out operations.
"We are working diligently to secure needed insurance, and College leadership is actively finalizing a faculty cohort with the Hampshire College Faculty Union," Chrisler said adding that an important component of mitigating risk and supporting students through the teach-out will be philanthropic support from alumni and friends of the College.
Chrisler also apologized to Hampshire College students.
"I am sorry for the uncertainty you have been managing. A summary of the teach-out plan (both Div III completion and Div I/II continuation pathways) will be added to the Hampshire website soon to provide clarity and as much detail as is available," Chrisler said.
