Virginia Intermont College in Bristol, VA held its final graduation ceremony on May 4, 2014. The school had been in financial trouble for a while. The beginning of the end came in 2013, when the Southern Association of Colleges and Schools (SACS) terminated the school's accreditation. Although nobody ever confused VI with Harvard, this action was not taken because of academic standards. Instead, the problem was that VI had an unsustainable economic model. What this meant was, most of the school's revenue was coming from student tuition, and not from endowments and donations.
The SACS decision became a self-fulfilling prophecy. The prospect of the loss of accreditation scared away prospective students, reducing the school's revenue, and making it inviable financially. VI's administration attempted to solve the accreditation problem by merging with another institution, but a prospective merger fell through.