DES MOINES (AP) -- Vennard College in southern Iowa is closing, citing debt caused by stagnant enrollment.

The small, Christian college in University Park, near Oskaloosa, will cease operations at the end of the semester. It was founded in 1910.

"It's the right decision," college President Bruce Moyer said Thursday.

Moyer said the decision was made by the school's board of trustees on the recommendation of the administration.

"We're sad. It's not a decision we would have liked to have made, but it's the right decision so we can bring some closure with integrity," he said.

Officials estimate a deficit of $300,000 for the semester. The school has 70 students, which is about the same as last year.

"The financial situation is due to the low enrollment. Our donations are up 50 percent from a year ago despite what has happened with the economy," Moyer said. "We'd have to increase by 60 students to break even, and we didn't feel like we could do that soon enough."

Moyer said the college has made a commitment to pay faculty and staff through December. As assets are sold, he said, the board of trustees hopes to pay severance and transition pay.

Moyer said students who were to graduate in the spring will graduate at the end of the semester. The school is sponsoring a college fair for undergraduate students.