Key Points
- The University of Providence (UP) in Great Falls, Montana, will end instruction on August 20, 2027, after its board voted to close on October 27, 2026.
- Students can finish at UP or move to another school, and that choice decides their federal loan options.
- A closed school discharge requires an application, and students who carry credits into a comparable program generally lose eligibility.
The University of Providence Board of Trustees voted on October 27, 2026, to close the Catholic university in Great Falls, Montana, at the end of the 2026-27 academic year. The final day of instruction is August 20, 2027.
About 49 nonprofit colleges have closed or announced closures since March 2020, according to BestColleges. The school now joins the colleges that announced closures in 2026.
President Caroline Goulet cited years of falling enrollment and financial pressure in a video message. “Despite those efforts, we could not find a financially sustainable way forward,” she said. Inside Higher Ed reports UP’s head count at about 430 students, down from 957 in fall 2016.
Large schools are cutting too, with Penn State targeting 47 programs for closure this fall.
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Why It Matters
Every current UP student now has to pick a path to a degree, and that path decides whether their federal student loans could be canceled. Students who finish a comparable program elsewhere generally can’t get a closed school discharge of their federal loans. Leaving without carrying credits into a comparable program can keep the discharge on the table.
UP posted a loss in nine of its last 10 fiscal years, according to Inside Higher Ed. Its cash fell to just under $250,000 by June 2025. In 2025 the school brought in $28.6 million against $35.6 million in expenses, based on its ProPublica nonprofit filings.
Families weighing a small private college can use our warning signs that a college could close to spot this kind of risk early.
What Are The Options For University Of Providence Students?
Each UP student will get an individualized plan to graduate at UP or move to another school. Teach-out agreements are still being finalized, according to the university’s student information page. That page also says students “do not have to wait for the teach-out or stay at UP.”
Any move to a new school means a new aid package, so list it on the 2027-28 FAFSA.
Higher Ed Dive reports UP’s teach-out plan will keep students’ out-of-pocket costs at or below what they would have paid at UP. It also plans to use donations for summer 2027 tuition scholarships and lower graduate tuition, per the Daily Montanan.
Carroll College and the Montana University System have both offered transfer help. Students transferring on their own should update the FAFSA with the new school and get a written aid offer before they commit.
| Path | What It Means | Federal Loan Discharge |
|---|---|---|
| Graduate At UP | Finish all coursework before final instruction ends | Not Eligible |
| Approved Teach-Out | Complete a comparable program at a UP partner school | Generally Not Eligible |
| Transfer With Credits | UP credits count toward a comparable program elsewhere | Not Eligible |
| Change Programs | Credits go toward a program that isn’t comparable | May Qualify |
| Stop Or Start Over | Enrolled at closure or left within 180 days, with no credits carried over | May Qualify |
How Does Closed School Discharge Work For UP Students?
A closed school discharge cancels the federal student loans a borrower took out to attend a school that closed before they could finish. Federal Student Aid says a borrower qualifies if they were enrolled when the school closed or withdrew within 180 days before it. That 180-day window covers loans first disbursed on or after July 1, 2020, after a 2019 rule change extended it from 120 days. The discharge is one of several routes in our full list of student loan forgiveness programs.
Timing matters for UP students. If the Department of Education sets the closure date at August 20, 2027, students who withdraw on or after about February 21, 2027, would fall inside the window. A student who leaves this fall and transfers credits into the same major elsewhere would not qualify. That trade-off is the same one students faced at other colleges that closed this year.
Eligible borrowers have to apply. The One Big Beautiful Bill Act restored the 2020 closed school rules for loans made before July 1, 2035, and those rules ended automatic discharges for schools that close after July 1, 2020. The application goes to your servicer, so find your federal student loan servicer now. The Consumer Financial Protection Bureau says private student loans don’t qualify, though some lenders may offer help.
How This Connects
UP fits a pattern of small private colleges that leaned on one outside source of money. Providence St. Joseph Health gave UP up to $8.5 million a year, according to Inside Higher Ed. The health system then required UP to become financially independent by December 2027. Federal pressure is rising too, as a new earnings test for federal student loans starts hitting programs in 2028-29.
What’s Next
Goulet said UP will name teach-out partners as agreements are signed, KRTV reports. The school also plans to share details on transcripts and alumni records in the coming months. We’ll add the teach-out partners to our running list of college closures once UP announces them.
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.