Oakland City University has announced it is suspending undergraduate academic programs for the 2026-27 school year and laying off employees as the school continues to deal with financial difficulties.
OCU spokesperson Todd Mosby said the layoffs will take effect May 31. The university stated it plans to continue offering graduate-level programs while preparing to resume undergraduate operations during the 2027-28 academic year.
The announcement comes as more than 100 employees reportedly still have not received paychecks.
Last week, university administrators met with employees and announced plans to keep the institution operating. Mosby said the university recently finalized a “strategic partnership” intended to help maintain operations, though details of the agreement have not yet been released because paperwork is still being completed.
Students received a letter Tuesday afternoon from OCU President Ron D. Dempsey explaining the decision.
In the letter, Dempsey said the suspension followed “much prayer, thoughtful consideration, and careful evaluation of the current financial realities facing our institution.”
University officials said students nearing graduation—those within 25 credit hours of completing their degree—should work with advisors and deans regarding possible teach-out opportunities during the fall 2026 and spring 2027 semesters.
Students wishing to continue their education elsewhere are being encouraged to explore transfer opportunities. OCU officials noted the university has signed an agreement with University of Southern Indiana to assist students interested in transferring there.
The university also told students they could choose to temporarily pause their studies and return if undergraduate programs resume in fall 2027. In the letter, Dempsey expressed confidence that a carbon capture patent connected to the university would eventually be sold, allowing undergraduate programs to reopen.
University officials said advisors, deans, and coaches will continue assisting students as they determine their next steps.