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Auditors warn there is “substantial doubt” about Hampshire College’s ability to continue operating unless it improves its finances, according to an independent financial report released in late 2025.
The audit from CliftonLarsonAllen said Hampshire had over $20 million in debt and an operating deficit of $3.7 million in 2025, as first reported by the Boston Business Journal.
A Hampshire spokesperson said the college remains confident that it will “successfully navigate the financial headwinds impacting higher education, while preparing our graduates for the fast-paced challenges of the current moment in a way no other college can.”
Hampshire, in Amherst, has been struggling for years after nearly closing in 2019. While it has persevered through the difficulties, the college hasn’t made it out safely just yet.
The college missed its 2025 enrollment goal by around half, recruiting 168 students instead of 300. That makes for a total of 750 full-time students, up from 2022’s enrollment of about 500.
Despite the enrollment struggles, Hampshire President Jennifer Chrisler said she is optimistic about the college’s future.
Since 2022, the college has been working with its bondholders to pursue refinancing options, increase enrollment and align expenses and revenue, a college spokesperson said.
The auditor group pointed to issues at Hampshire, such as mounting debt, issues with securing refinancing and difficulty meeting bond obligations. Bondholders extended the refinancing date to September 2026, in exchange for a mortgage on certain properties.
The college has consistently made debt payments to lenders and operated within their Financial Stability Plan, a spokesperson said.
In reaction to its enrollment and financial challenges, Hampshire laid off non-faculty employees, suspended certain benefits and required senior leadership to take pay cuts, among other actions in 2024.
Some in the college community are still optimistic about the college’s future, while others have said the consistent ups and downs have affected morale and created an “aura of resentment and frustration across campus,” student Samara Ternoir told MassLive.