Rider University is moving forward with sweeping restructuring measures intended to stabilize its deteriorating financial position, President John R. Loyack told students and parents Wednesday, following the Board of Trustees’ unanimous approval of the institution’s March to Sustainability plan.
The update comes two days after Loyack notified faculty and staff of significant cuts — including salary reductions, faculty layoffs, and suspended retirement contributions — that he said are necessary to prevent the university from running out of cash before the end of the fiscal year.
In Wednesday’s letter, Loyack sought to reassure current students and families that academic programs, campus activities, athletics, scholarship commitments, and financial aid packages will remain unchanged.
“We intend to ensure that every student can take the classes they need to complete their intended major and earn their degree as they have planned,” Loyack wrote. “The plan will not make any changes that affect the offering of student programs, athletics, clubs, Greek life or other on-campus experiences.”
Restructuring outlined in newly released sustainability plan
The full March to Sustainability plan, released to the Rider community Wednesday, details the most significant financial restructuring the university has attempted in more than a decade.
The plan outlines:
- A 14% salary reduction for all employee groups beginning Dec. 1, 2025, with wages then frozen.
- Suspension of the university’s retirement contribution indefinitely.
- Increase in faculty teaching loads beginning Fall 2026 — full-time tenure/tenure-track faculty shifting from a 3–3 to a 4–4 load; lecturers to 5–5; department chairs to 3–3.
- Elimination of 35–40 full-time faculty positions effective Dec. 31, 2025, based on a performance rubric outlined in the plan.
- Ending external tuition remission for AAUP-represented employees beginning in the 2026–27 academic year.
- Reductions to student leadership honoraria and Undergraduate Research Scholar Awards starting in 2026.
- Reduction of athletic scholarship support across select sports.
- Consolidation of academic departments and administrative functions.
- Additional cuts to paid faculty development programs, travel funds, and adjunct benefits.
According to the university’s financial documentation, Rider has faced compounding fiscal pressures, including:
- Loss of its $5 million First Bank line of credit this fall
- A requirement to re-restrict $7 million in previously unrestricted endowment funds
- A $4.75 million donor repayment obligation tied to restricted endowment funds used in earlier years
- Rider’s financial composite score falling below federal minimums, placing the university on provisional certification and Heightened Cash Monitoring 1 status
- Loss of membership in NC-SARA, limiting Rider’s ability to enroll out-of-state online students
- Years of operating budget deficits, totaling more than $17 million at times
The plan estimates the restructuring will generate approximately $11.7 million in net annualized savings after accounting for anticipated enrollment losses.
President: Student experience will be protected, not reduced
Loyack told families the university has intentionally designed the plan to prevent disruption to academics, advising, clubs, sports, or financial aid.
He highlighted new investments in student support services, including restructuring Student Affairs and expanding retention-focused initiatives. The university has also raised more than $1.2 million for its newly created Presidential Hope Fund, designed to help students facing emergencies or financial hardship stay enrolled.
“This restructuring will ensure that every student will continue to get the experience you have come to appreciate here at Rider,” Loyack said.
Forums scheduled; survey to be released next week
Rider was expected to hold faculty and staff forums last week followed by meetings with the Student Government Association. A webinar for students and parents was also expected for this week. An anonymous survey is also expected to be released this week with responses accepted through Nov. 25
A community bracing for major change
Loyack acknowledged the emotional strain the plan is causing.
“These changes bring pain, frustration, fear and uncertainty,” he wrote. “We profoundly wish the financial situation were otherwise.”
Still, he said the campus must confront its current condition directly.
“Only with this plan can we restructure the University to meet the realities of our size and scale,” Loyack said, “and continue to ensure that Rider serves students present and future with excellence.”
CALL FOR RIDER COMMUNITY VOICES
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