Duluth Business University (DBU) has been awarding degrees and diplomas since 1891, but next summer, it will give out its last.
The for-profit school, the oldest postsecondary institution in the city, will close in June after 126 years of educating students.
The reason? Last fall, the U.S. Department of Education stopped recognizing the Accrediting Council for Independent Colleges and Schools (ACICS), DBU's accrediting agency. The government said ACICS was out of compliance with numerous agency criteria and could no longer serve as a "gatekeeper" of institutional eligibility for federal student aid programs.
Without accreditation, students can't get federal financial aid, and that resulted in an enrollment nose-dive at DBU, said James Gessner, the school's owner and president for the past 52 years. The school offers programs in business administration, health care management, human services, massage therapy, medical assisting, veterinary technology and medical billing and coding.
"We got blindsided by this thing," Gessner said, referring to the education department decision. "We've never been accused of anything. We've never paid a fine. We've been clean. We didn't do anything wrong."
The school sought accreditation from a new overseer but withdrew its application when it became clear that, even with a new business plan, it would not be able to recover from the enrollment slide.
The U.S. Department of Education said in December that it would provisionally certify ACICS-accredited institutions, enabling students to get financial aid for up to 18 months. That allows DBU to remain accredited until it closes. No new students were admitted for the most recent term that began July 10.
DBU offers diplomas for bachelor's degrees and other programs that typically take nine months to four years to complete. Campus Director Bonnie Kupczynski said the school has rewritten schedules and will bring on extra staff so students can complete more technical courses before the closing and take general education courses at other schools or online, if necessary.