Xavier’s Crossroads: Generosity Meets Hard Reality 

By Nia Moss 

Xavier University of Louisiana is streamlining its finances, adjusting to current changes in the higher education landscape. In fall 2025, the university implemented staff layoffs, while at the same time, it also received a historic $38 million donation from philanthropist MacKenzie Scott, both in the same semester. 

“Xavier’s finances are on solid ground,” said Xavier’s President Dr. Reynold Verret. “Some of the things that we had to do were also to make sure that we did not put ourselves at risk, given some things going on in the federal government right now.” 

University leadership says these decisions reflect long-term financial planning rather than a fiscal crisis, citing federal policy shifts, enrollment risks and uncertainties in higher education funding. 

This juxtaposition of staffing cuts and a major financial donation has raised questions among students and campus stakeholders about the university’s financial standing and priorities. While explanations offer context, they do not always provide reassurance. 

The contrast underscores the tension many institutions face in balancing immediate operational needs with long-term financial strategy. University leaders maintain the restructuring was based on forward-looking fiscal planning, not short-term instability. 

In an official campus-wide email, university leadership described the layoffs as “very difficult but necessary decisions” aimed at aligning operations and resources with long-term financial sustainability. The statement emphasized that no additional separations were planned at this time. 

According to Verret, staffing reductions were proactive, not a reaction to a budget deficit. He cited potential federal policy changes, including threats to Parent PLUS and Graduate PLUS loans, as major concerns affecting enrollment and affordability. 

“Grad PLUS loans are being abolished,” Verret said. 

He explained that many Xavier pharmacy students rely on Graduate PLUS loans. “Our graduate students in the PA program depend upon Grad PLUS loans – a significant number of them,” he said. Roughly 30 to 40% of graduate pharmacy students depend on these loans. 

He also pointed to threatened reductions in federal Facilities and Administrative funding, along with broader economic pressures such as rising construction costs due to tariffs. 

“We took a hard look with our finance team, with our CFOs, and also other leadership teams to see exactly what needed to be reduced to balance the budget as we began to forecast it,” Verret said. 

The $38 million gift from MacKenzie Scott is the largest private donation in Xavier’s history. Verret explained that the funds are being invested with the university’s endowment to generate long-term returns for student financial aid, not immediate operational expenses. 

“The money is going into an endowment, so that it produces yield to support student financial aid,” he said. 

Endowment funds are invested to generate returns while preserving the original gift, which would yield about $2 million each year to further strengthen support for financial aid. 

“Our responsibility is both to the students who are here today, but also those who might arrive in the future,” he said. He added that the donation did not directly influence staffing reductions. 

Beyond the Scott donation, Verret confirmed the university is engaged in conversations with additional donors, though details remain confidential. On the Centennial Campaign, Verret said, “We are on pace; we’re growing right now.” 

Questions about tuition increases have surfaced. Verret said tuition changes occur periodically, but the university approaches increase cautiously. 

“If you think about it, Xavier’s tuition is less than two-thirds of its peer institutions,” he said.  

Students have pointed to ongoing construction as a contrast to staffing cuts. Verret explained that building projects are funded through a combination of debt financing, operational funds, and long-term residential investment planning, separating those funds from day-to-day operations. 

“Everything we do has been within our means,” he said. 

When asked what the Xavier community should expect over the next 12 to 24 months, Verret pointed to broader economic unpredictability, suggesting that flexibility will be crucial. 

“The one term that you can use for this period of time is uncertainty,” he said. 

Still, he rejected the notion that Xavier is in decline, instead citing new academic programs and expansion as indicators of growth. 

“Xavier is in a very strong place,” he said. “Xavier has been growing. If you go nationally and listen to conversations about Xavier, it’s rather optimistic.”