Hampshire College Faces Risk of Closure

Hampshire College is at risk of closure if it cannot refinance its current debt, according to its most recent fiscal audit.

The audit, covering the 2025 fiscal year, found that Hampshire College possesses a total debt of $24.9 million as of the end of June.

Hampshire is currently indebted to multiple bondholders. It has not yet been able to refund or refinance the bonds as of November 2025. “In addition to talks with bondholders, auditors cited recurring decreases in net assets and negative cash flow from the college’s operations,” an article published by Higher Ed Dive on Jan. 16. wrote. 

According to the audit, “both [of Hampshire College’s bond] lenders have extended the tender dates to September 2026.”

Hampshire College is currently operating in a deficit of $3.7 million. Hampshire College’s $26.5 million endowment (compared to Amherst College’s $3.55 billion as of fiscal year 2024) means that it is heavily reliant on student tuition to remain afloat. The college enrolled 150 students in its most recent class, but this is only half its class target according to current Hampshire College President Jennifer Chrisler in a Jan. 7 interview. With this sharp decrease in enrollment, Hampshire is struggling to find a steady source of income.

Hampshire College has had a long history of financial instability, last facing the threat of closure in 2019. Former President Edward Wingenbach made successful revitalizing efforts including a curriculum overhaul and a $60 million fundraising campaign. President Chrisler has been elected to continue addressing Hampshire’s financial troubles. 

“The College has experienced multiple years of negative financial trends, such as recurring decreases in net assets from operating activities and negative cash flows from operating activities. These conditions raise substantial doubt about the College’s ability to continue as a going concern within one year after the date that the financial statements are issued,” the audit stated.

Hampshire College has not released any public statements regarding its plan of action. According to the audit, the college’s ability to stay afloat “is dependent on successfully securing financing or additional bond holder forbearance.”