Rider University, located in Lawrence Township, New Jersey, is set to implement significant budget cuts affecting its academic and administrative structures. As part of its “March to Sustainability Plan,” the university plans to lay off approximately 40 full-time faculty members, which amounts to a reduction of 25% of its full-time faculty. Additionally, all employees will see a base pay reduction of 14%, alongside the elimination of several senior administrative positions.
In a statement released on Monday evening, university President John R. Loyack cited “new and unforeseen developments” that have severely impacted the institution’s expenses and cash flow. He noted that these challenges have resulted in a “significant cash shortfall.” Loyack explained that the university has lost an open line of credit, leaving it with no liquidity. The drastic measures being taken are seen as the only viable option to address the institution’s financial crisis.
Impact on Students and Faculty
The layoffs are expected to occur by the end of the year, and the university aims to minimize the impact of these cuts on its approximately 4,000 students. Alongside the layoffs, Rider will also discontinue health benefits for priority adjunct faculty starting January 1, 2024, and phase out faculty tuition remission—an important benefit for employees and their families—beginning with the 2026-27 academic year.
These cost-cutting decisions come in response to concerns raised by the Middle States Commission on Higher Education, which placed Rider University on probation due to its financial difficulties. Despite this probation, the university retains its accreditation status.
Loyack acknowledged the emotional toll these decisions have on the university community, stating, “All of us involved are aware that this moment brings pain, frustration, fear, and uncertainty. We profoundly wish the financial situation were otherwise.” He expressed hope that the sacrifices being made now will ensure the university’s survival for future generations.
Financial Context and Future Prospects
Annual tuition at Rider University is reported to be $43,240, while the median salary for graduates six years post-graduation stands at $51,289. The university has produced notable alumni, including former University of Notre Dame coach Richard “Digger” Phelps and Monét X Change, the winner of “RuPaul’s Drag Race All Stars” in 2019.
Rider University is ranked 16th nationally in U.S. News & World Report’s list of “Best Value Schools,” highlighting its significance in the higher education landscape. The current financial challenges, however, present a critical juncture for the institution, prompting urgent measures to secure its future.
As Rider navigates these turbulent waters, the broader implications for its faculty, staff, and student body remain a primary concern. The university’s leadership aims to emerge from this moment with a sustainable model that continues to serve its educational mission.
