Closure of Delaware College of Art and Design accelerated by FAFSA debacle
By Jacob Owens
(Spotlight Delaware is a collaborative, nonprofit, community-driven newsroom covering the First State. Learn more at Spotlightdelaware.org)
For 27 years, the Delaware College of Art and Design (DCAD) has helped generations of local artists build their skills and confidence, but after years of declining enrollment, the small fine arts school will close its doors in the downtown Wilmington.
That unfortunate ending was driven, at least in part, by this year’s debacle over federal student aid, leaders say.
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The Free Application for Federal Student Aid, better known as the FAFSA, is a federal form used to determine eligibility for Pell Grants and federal student loans, as well as financial aid from many colleges. On December 30, the U.S. Department of Education switched to a new, shorter FAFSA form, but its rollout has been marked by glitches and errors that have delayed funding approval for millions of American families.
Those issues have particularly impacted the ability of low-income families to confirm a student’s attendance at colleges and universities next fall, and DCAD may well be the first institution to blame FAFSA for contributing to its closure.
“Like many independent art and design schools, DCAD faces long-standing challenges related to declining enrollment, a shrinking pool of college-aged students, rising costs, and unexpected issues with the launch of the new Free Application of Federal Student Aid. ”DCAD President Jean Dahlgren said in a statement announcing the closure. “We did not make the decision lightly and we looked for every possible way to avoid it. Our declining enrollment numbers in recent years and for the upcoming school year have prevented us from adequately supporting our educational purposes and programs. The Board of Trustees has worked diligently to find other funding solutions, but none allow us to overcome the long-term problem of too few students.”
When contacted by Spotlight Delaware, Dahlgren said she could not comment beyond her public statement.
The Delaware College of Art and Design (DCAD) faced years of declining enrollment even before the pandemic. | FEATURED DELAWARE PHOTO BY JACOB OWENS
Weakening finances
Like many small private universities, DCAD has struggled to attract growing enrollment. Between 2017 and 2022, enrollment fell nearly 10% to a total of 129 students, according to federal data. Compared to 2010 levels, it was down about 42%.
With an annual tuition of around $30,000, declining enrollment put a strain on the university’s future. The university’s aging facilities at its Market Street campus in Wilmington only exacerbated the problems, and in recent years it has sold its residence hall and dining halls.
As of June 30, 2023, DCAD had $2.9 million in financial assets, including $1.4 million in cash or cash equivalents. Those totals had increased from the previous year, but rising programmatic costs led to an operating deficit of nearly $1.3 million — its first shortfall in at least three years.
Despite having cash on hand, DCAD also faced an impending loan payment of about $381,000 this month, more than four times the typical loan payment the university faced over the next four years.
For years, DCAD had been on the brink of insolvency and auditors expressed concern about its ability to continue. University leaders aimed to achieve an enrollment of 200 or more students by the 2024-25 academic year by implementing more assertive marketing and communications software and hiring industry consultants. It also secured a $1.5 million matching grant from the state government, but was required to raise $1 million on its own before it could tap into those funds.
Perhaps most promising was the completion of a $400,000 donor-funded Student Technology Center earlier this year, which helped the university receive more than 500 applications for the fall 2024 semester, officials said.
Problems with the FAFSA
However, despite the increase in applications, it appears that issues related to FAFSA approvals may have played a major role in DCAD’s rapid decline.
In 2022, 93% of DCAD’s student body received a Pell Grant, while 83% had a federal student loan; both are byproducts of the FAFSA process. Delays in approving a loan or grant could mean the difference between going to college or not for many students, and those problems arose at a time when DCAD couldn’t afford to see enrollment decline again.
Deborah Obalil, president and CEO of the Association of Independent Colleges of Art and Design, a nonprofit consortium of leading arts and design schools in the United States and Canada, said the FAFSA has been a big topic this year. for its members. which included DCAD.
“There is a whole group of students, mainly those who have the greatest need of support to continue with their university education and where the university in many cases is really a key path to improve their future life and even the lives of their families and communities, who They really have been left in limbo,” he said. “These students are still waiting for information about what it will cost them to go to college next year and that, of course, worries colleges because many of them are financially dependent on tuition.”
DCAD is not alone in its financial difficulties, as the much larger Philadelphia University of the Arts recently announced its closure and California‘s Woodbury University agreed to a merger.
“Nationally, there is an increase in closures of all types of colleges and universities, so art and design colleges are not immune to the same pressures that all different types of colleges and universities face. We know from the data that among our members, the recovery from the pandemic has not been uniform,” Obalil said, noting that some schools are seeing an increase in enrollment.
One option that was not available to save DCAD’s future was its endowment, which was just under $1 million as of June 30, 2023, and its use was restricted to student scholarships only.
Juli, a DCAD student artist, drew “Shocking Self-Portrait!” during his stay at the university. | PHOTO COURTESY OF @JuliBirb
DCAD student artist Milo C. painted “Enter Stage Left” while in college. | PHOTO COURTESY OF @Artbl0ck_central
a sudden end
For the 50 students stuck between their first and second years in DCAD’s associate degree programs, the closure came as a shock, with no warning before the public announcement that came several weeks after the university’s academic year ended.
Many told Spotlight Delaware that they learned of the closure from an email sent on May 23.
“I had heard that DCAD was not in the best financial situation, but nowhere near the level of complete closure. There was no warning or grace semester/year to get things in order for both students and staff, we were informed at the same time as the general public,” said Jinx McDonegal, a rising sophomore. “This whole situation has been so sudden and, to be honest, quite stressful. Having what seemed like solid plans for my education simply implode has been difficult. “We were all enrolled in classes next semester, there was no reason to anticipate it, at least not right away.”
As part of its settlement agreement with its accreditor, the Middle States Commission on Higher Education, DCAD has developed transfer agreements with Pennsylvania College of Art and Design in Lancaster, Pennsylvania, and Moore College of Art and Design in Philadelphia . The University of Delaware and the College of New Jersey have also recently announced efforts to locate affected students.
Another rising sophomore, who asked to be identified only by her first name, Juli, said she was disappointed in the way the university informed its students and led them to believe they would return next fall. She has begun helping other classmates by seeking recommendations from area college alumni about her programs through forums like Reddit.
“A couple of students who were going to enroll at DCAD right out of high school contacted me and asked me where they should go next. It really broke my heart to see how many students were really counting on DCAD as their way to achieve their dream careers, and now that no longer exists,” she said.
While many students said they were planning to transfer to another school, those changes will not be without challenges. Juli, who commuted to DCAD, pointed out that that wouldn’t be possible in PCAD and he would have to spend thousands more each year on a rental.
McDonegal cares for her mother, who is disabled with a chronic, progressive illness, and now they will have to create an entirely new network of resources to ensure her care.
“This sudden change in planning not only affects me, but also the people around me,” they said. “Now I have to process leaving her much faster and fight to gather resources for her when she’s gone.”
The community supports the students.
While the experience of losing their school has been traumatic, DCAD students said they have been overwhelmed by the support of the local arts scene.
Juli made an Instagram post featuring the work and CashApp profiles of many DCAD artists shortly after the announcement, and her followers have been donating to help them on their journey.
Those efforts have blossomed into a full-fledged benefit art exhibit at The Sold Firm, the small independent art gallery near the DCAD campus.
“There was no way I was going to sit back, watch and not make some move for the displaced DCAD students,” said Nataki Oliver, the gallery’s owner.
Support the community
Titled “Breaking News DCAD Student Art Sale,” the three-day art exhibition and sale will take place June 28-30 at the gallery located at 800 N. Tatnall St. The Sold Firm is offering its space commission-free with all Proceeds from the sale go to the student artists.
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