Indiana’s Only Historically Black University Shuts Down After 47 Years

Martin University, Indiana’s only historically Black university, will close permanently after its Board of Trustees voted to cease operations, citing unsustainable finances.

The shutdown shows how access-oriented colleges without endowments become structurally dependent on volatile public funding, philanthropy, and enrollment volume. When any one of those inputs weakens, accreditation and creditor obligations can force liquidation, shifting educational infrastructure toward larger institutions with stronger balance sheets. Endowment scarcity turns budget shocks into existential threats.

According to The EDU Ledger, Martin’s trustees concluded that the school’s long-standing financial model could not support continued operations. “Without an endowment and given today’s political climate around higher education funding, this financial model is simply not sustainable,” the Board wrote, according to the publication. The university relied heavily on grants, government funding, and philanthropic contributions because many students could not afford full tuition, the Board said.

Operational costs, enrollment, and debt closed the runway. The Board tied the breakdown to declining enrollment, rising operating costs, and accumulated debt. The EDU Ledger reported that leadership pursued institutional collaborations, transformational gifts, business and community partnerships, and enrollment growth initiatives, but did not generate sufficient financial or enrollment momentum to sustain them.

WTHR Channel 13 reported that the Higher Learning Commission directed Martin University to cease operations entirely, citing the institution’s inability to meet financial and operational requirements. That sequence matters because accreditation serves as a gatekeeper for federal aid and credit transfer. Once an institution falls out of compliance, the path narrows quickly from stabilization to wind-down. Students bear execution risk in institutional failures. WTHR reported significant communication gaps as the closure unfolded.

WTHR reported that repeated attempts by Coleman and transfer institutions to contact Martin University went unanswered. The Board said assets will be sold in an orderly manner to meet obligations to creditors and employees, according to The EDU Ledger. WTHR reported that the University of Indianapolis and Marian University offered to accept transfer credits and, in some cases, match Martin’s tuition.