By the Fall of 1994, another enrollment drop forced them to borrow $2 million to get through the 94-95 school year; a violation of North American Division working policy to borrow money for operating purposes. In May 1995, the AUC had $6.2 million in debt. Approximately $3 million was owed to the Atlantic Union Revolving Fund and $2.4 million owed to the General Conference. By August 1995, AUC met their first cash crunch and were forced to dip into the endowment funds to meet payroll. This process was repeated in November and December of the same year until the endowment funds were exhausted. In 1998, the New England Association of Schools and Colleges issued 28 citations to Atlantic Union after an on-site visit. Most pertained to problems with finances, fund raising, the curriculum, student services, and faculty pay. After a focused evaluation in 2001, the Massachusetts Commission on Institutions of Higher Education recommended to the Board of Trustees for NEASC that the College's accreditation be terminated. In December 2003, the Board of Trustees placed the College on probation. In 2008, NEASC placed the College on probation status due to "failure to meet [its] Standard on Financial Resources". In February 2011, it was announced that Atlantic Union College would lose its accreditation on July 31, 2011. The AUC board of trustees undertook negotiations with Washington Adventist University with the aim of establishing a branch campus of WAU on AUC's former campus. However. AUC President Norman Wendth announced in July that the plan had not gained approval from the Massachusetts Department of Education in time for the Fall 2011 school term. All 179 faculty and staff at AUC were laid off on July 31, 2011. Only one of the 450 enrolled students failed to find a new college in time for the fall semester, while all nursing students transferred to Mount Wachusett Community College in Gardner, Massachusetts. Adult degree program and distance learning students were not affected and automatically became students of Washington Adventist University. In October 2011 the AUC board of trustees voted to suspend any further negotiations for a branch of WAU after the institutions were unable to reach an operating agreement. After 2011 some non-degree educational activities continued at Atlantic Union. Performing arts instruction continued at the Thayer Performing Arts Center, and a certificate program in evangelism was instituted in 2013, the Northeast Evangelism Training School. Following a site visit by the Massachusetts Department of Higher Education (DHE) and the appointment of a new interim president late in 2012, the college won approval by the Massachusetts Board of Higher Education to offer two degrees beginning in 2013.