Eastern Gateway Community College Investigation

The Auditor of State’s Single Audit of FY2023 examined the college’s financial operations and identified significant findings.

The audit identified more than $17 million in questioned costs, representing the entirety of the federal student aid programs reviewed. It also identified problems involving financial records, internal controls, student enrollment and attendance documentation, financial aid and borrowing. The Auditor’s Special Investigations Unit has continued a separate investigation.

On August 8, 2022, the U.S. Department of Education placed EGCC on Heightened Cash Monitoring 2 status. On March 11, 2024, the Chancellor of Higher Education declared EGCC under Fiscal Watch*.

By early 2024, the situation had become sufficiently serious that the college paused enrollment. Ohio advanced more than $6 million in state funding, but the college’s board ultimately determined that it could not continue operating.

The final instructional period ended in July, commencement occurred in August, and the college formally dissolved October 31, 2024, with wind down and by operation of law occurring on September 24, 2025.

*Learn more about fiscal distress and what each designation means on the Fiscal Distress page (opens in a new tab)

When the free-college program was eventually discontinued, EGCC lost a substantial portion of its enrollment. The Auditor’s later audit documents a 48.9% decline in Fall 2023 enrollment compared with Fall 2022.

The enrollment decline occurred while the college was dealing with accreditation issues, financial problems and questions concerning its management of federal financial aid.

The college dramatically changed its business model by aggressively pursuing online students nationwide. The free-college program for union members and their families produced enormous enrollment growth.

That growth became central to the college’s later problems. The Higher Learning Commission placed EGCC on probation in 2021, and federal authorities subsequently intervened over the college’s administration of federal financial aid and the free-college program.

EGCC’s original mission was straightforward: provide affordable technical and community-college education to residents of eastern Ohio.

Over several decades it expanded from a technical institute into a broader community college serving Jefferson, Columbiana, Mahoning and Trumbull counties.