Rider drastically slashes its debt to gain financial stability

By Cal Sutton

Rider has implemented all parts of the March to Sustainability Plan, originally created to stabilize its finances, according to university officials. Though still on a non-compliance probationary status, the university is maintaining its accreditation for the foreseeable future.

“I think that there’s been some really good work done to start to get the university in a place where it is more financially stable,” Senior Vice President and Chief of Staff Mary-Alice Ozechoski said in a June 10 interview.

When first placed on “non-compliance” probation with the Middle States Commission on Higher Education, an organization that monitors the accreditation of various colleges and universities, Rider released the Plan, which outlined the university’s next steps to climb out of its $21.8 million debt.

Since the Plan was announced, various changes were seen around campus. Most notably, 30 full-time faculty members were laid off, along with remaining faculty and staff members taking salary cuts ranging from 3.5 to 14%. Employees with higher salaries took steeper pay cuts. Additionally, the university entered a $10 million deal with Mercer County that included selling 56 acres along with access to some Rider facilities.

Following its implementation at the beginning of the 2025-26 academic year, all parts of the March to Sustainability Plan have now been fully executed, according to Ozechoski.

The financial hardships that Rider has been facing are not unique. A significant number of universities nationwide are enduring similar challenges with declining enrollment and budget cuts. Small, non-profit colleges like Rider have been impacted.

Rider officials said the steps Rider is taking to remain financially solvent appear to be effective. The Open School Ranking’s Distressed Colleges Index released earlier this month listed Rider at 413 of the 1,375 colleges and universities it ranked across the country that details the financial health of universities, listing the most distressed as “walking zombies.” While only one New Jersey college was identified as a walking zombie, five were identified as distressed and seven were healthy.

Of the 28 New Jersey schools indexed, the only walking zombie was the Iselin campus of DeVry University.

Factors taken into account when scoring a university are whether admissions rates have risen or dropped, enrollment, total endowment and inflation-adjusted endowment.

According to the DCI, Rider was among 15 classified as “normal” for financial stability, with a score of 45.6 out of 100. Within this band are approximately half of the colleges on the list.

In a June 11 email to The Rider News, Rider’s Vice President for Finance, Chief Administrative Officer and Treasurer Thomas Papa said, “We have done a great job during this fiscal year to stabilize our spending and better align our expenses with the revenue we have been able to collect. … We are slowly digging our way out of a very deep structural deficit so we have done a good job.”

Since his start at the university in September 2025, Papa has worked with Rider President John Loyack to help stabilize the university’s finances.

“The Plan provided over $15 million in annual savings that has been fundamental to stabilizing our financial situation,” Papa said.

Papa stated that the actions taken have set Rider on pace to break even by fiscal 2027.

Loyack declined to comment on the university’s financial situation following multiple attempts to contact him by The Rider News since May 27.

Rider has paid off two loans. In October, a $4.8 million line of credit was paid off and in March, a $10.3 million loan from Charter Asset Management was also settled.

Papa said a second loan of $5 million with Charter Asset Management is to be paid off in the first week of July.

“Just over $20 [million] of debt will be paid off in the president’s first year,” Papa said.

In recent weeks, the Plan was removed from the university’s website, along with other online information that mentioned the Plan.

The Plan impacted enrollment for the upcoming academic year, Ozechoski said.

“It wasn’t an easy thing to put on our website to begin with,” Ozechoski said. “It affects people looking at our website around enrollment or graduate programs.”

The university is now looking at a smaller incoming class than in past years. According to Ozechoski, the current enrollment is slightly more than 600 new students planned to start in fall 2026. She also noted that Rider’s administration has prepared for a smaller incoming class and they budgeted for this change in enrollment.

In 2024, Rider reported 1,030 new students. 2023 and 2024 were back-to-back years where more than 1,000 new students enrolled. It is unclear how many new students came to Rider in 2025.

The Plan’s hefty layoffs that took place in December are not planned to be reversed once the university’s finances become more stable, according to Ozechoski.

Instead, the university plans to make a variety of changes to enhance the student experience. Ozechoski said in addition to interior painting in residence halls, there will be new furniture in lounges and enhancement to outdoor recreational spaces including a zen garden outside of the Vona Center.

Dual enrollment for high school students in the community is also on the horizon. This will allow local high school students to explore what Rider has to offer at a reasonable price.

“Once you start taking classes at Rider and you get to experience the campus and experience the faculty, you’re going to be more likely to enroll,” Ozechoski said.

This story was amended on June 15 at 4:35 p.m. to correct typos.