In 1973, Athens College found itself once again in financial crisis.

The student enrollment dropped, leaving the college with not enough students to fill the four new dormitories that the college had assumed considerable debt to build.

As the student enrollment continued to decrease, the college raised tuition to sustain sufficient operating income. This made Athens one of the most expensive colleges to attend in Alabama.

This caused many prospective students to seek out an education at more affordable state supported schools.

While the college had been a Methodist institution for 131 years, by this point the church contributed less than 2 percent of the college’s operating budget.

In April 1974, Methodist bishop Carl Julian Sanders agreed that the North Alabama Conference had priorities other than the college and encouraged State ownership to stabilize the institution.

The Board of Trustees approved a resolution to seek state affiliation soon after.

The Alabama Commission of Higher Education and other area higher education institutions were hesitant due to Athens indebtedness and the duplication of programs that already existed at other nearby institutions.

Local State representative Tommy Carter vowed to take the issue to the legislature and the Governor’s office.

The College and Carter decided to pursue making the College an upper-level institution to to serve the state’s junior college system. Alabama had no upper-level colleges and there were only a few in the nation.

Lieutenant Governor Jere Beasley pledged his support and assistance to the College, a significant advancement due to his role as presiding officer in the Alabama Senate.

The Alabama State Board of Education voted to accept Athens College property during its June 1975 meeting, excluding its indebtedness.

This would begin its operation as a two-year upper-division school.

By September, the College raised enough money to relieve its debt and conveyed the deeds to the State Board.

On Nov. 18, 1975 the State education budget passed with Athens State College as part of the budget.

The college moved from a semester to quarter system and tuition significantly decreased. The residential student population declined with the concurrent increase in non-traditional students.

Gradually, the College became the University it is today with fraternities, sororities and athletics disappearing and an abundance of evening and weekend offerings and, eventually, online offerings.