Life University makes ‘difficult but necessary’ cuts amid financial challenges

In that June 16 message addressed to the Life community and obtained by The Atlanta Journal-Constitution, McAulay called the decisions “difficult but necessary,” saying it would help save the school $4.4 million. The cost-cutting measures are meant to address a projected $5 million budget shortfall, wrote McAulay, adding that the university would continue advancing its mission and “ensuring that future generations of students can learn, grow, and thrive here.”

Life said its employees “are at the heart of our institution,” and the cuts were made “after careful consideration and with a deep understanding of the impact on the individuals and families involved.”

The events signal challenging times ahead for the private university, best known for operating one of the largest chiropractic programs in the nation.

A downgraded bond rating isn’t necessarily indicative of larger concerns, such as college closure, according to Justin Ortagus, a professor of higher education at the University of Texas at Austin. “With that said, I would be deeply concerned by the confluence of numerous issues that appear to be bad signals when seeking to assess the quality and financial health of Life University,” Ortagus wrote in an email.

Enrollment challenges

Enrollment difficulties, stemming from a recent probationary period, are at the root of Life’s troubles, according to two Moody’s reports.

In 2024, the university’s flagship chiropractic program was placed on probation by the Council of Chiropractic Education because not enough of its graduates were passing a national licensing exam. Life’s 77% pass rate was below CCE’s 80% requirement.

CCE chose to lift the sanction in January, and Life told the AJC its students achieved a 100% pass rate on the exam last winter. It also noted in a statement that the school and its Doctor of Chiropractic program maintained accreditation throughout the probation period “with no impact on graduates’ eligibility for licensure.”

Credit: Jenni Girtman for the AJC

Credit: Jenni Girtman for the AJC

The episode has led to a steep enrollment decline for the university. School data show 2,289 students were enrolled in fall 2025, the lowest in at least 10 years. It’s total fall enrollment dropped 11% between fall 2024 and fall 2025. The bulk of that loss was in its chiropractic college enrollment, which dropped by nearly 16%.

That’s a problem not only because nearly all school’s revenue comes from tuition, but also because its flagship chiropractic program is the school’s moneymaker; an undergraduate degree from the school costs roughly $55,000, but its chiropractic doctorate costs nearly $200,000.

A financial imbalance

At other Georgia schools, including privates like Emory University, Agnes Scott and Morehouse colleges, tuition and fees typically constitute less than 40% of the schools’ core revenue, according to federal data. At Life, the figure is above 90%, and Moody’s found the chiropractic college provides 75% of Life’s operating revenue.

“That means the university’s financial health rises and falls almost entirely with demand for chiropractic education. Even modest enrollment declines translate into major budget pressure,” said David R. Johnson, associate professor of higher education at Georgia State University.

The Moody’s reports suggested an increase in tuition revenue and “improvement in wealth to debt and expenses” could help lead to a better bond rating.

Robert Toutkoushian, a higher education professor at the University of Georgia, said a downgraded bond rating can make it harder and more expensive for a school to borrow money because it is viewed as a riskier investment. Moreover, it can make students and donors “more nervous about being involved with the institution.”

Life’s prognosis

Returning to pre-probation enrollment levels will be critical for Life. “Although the probation has been lifted, enrollment disruption persists and the pace of recovery will depend on stabilizing student demand,” reads a Moody’s report announcing the downgrade.

In its statement, Life said, “Like many universities nationwide, we continue to navigate ongoing enrollment challenges.” But although it’s true some other institutions are struggling with enrollment, leading to closures among some smaller liberal arts colleges, according to Daniel Collier, an assistant professor of higher education at the University of Memphis, Life also has what he considers a public perception problem.

“So when people are going to be looking this up, they’re going to see not only were you on probation, but that now you are at a riskier credit score,” Collier said, calling it “another negative piece of press” that could dissuade prospective students from enrolling.

Despite those factors, Toutkoushian said the school remains one of the largest chiropractic programs in the country, healthcare remains a high demand area, and the school has a low discount rate, all of which could help in its recovery. Moody’s wrote there is a sound student demand for chiropractic education, and Life benefits from being in the “vibrant” metro Atlanta region.

“By taking proactive and deliberate action, we are strengthening our long-term financial foundation while continuing to pursue initiatives focused on enrollment growth and institutional sustainability,” Life wrote. “These efforts will help ensure we remain well-positioned to invest in our students, faculty and academic programs for decades to come.”