AUGUSTA – Mid-State College ceased operations Friday after receiving word that it lost its accreditation for federal funds.

The college, with campuses in Augusta and Auburn, issued a statement Monday announcing the decision.

“Mid-State College has received official notification from the Accrediting Council for Independent Colleges and Schools regarding the institution’s application for a new grant of accreditation,” the statement said. “After conducting its onsite review and considering the response returned to them by the administration, the council has acted to deny the application.

“As such, the institution is no longer eligible to participate in the Title IV federal funding program. Without eligibility to receive Title IV funding for the students, the college felt it had no choice but to close its doors…”

The statement referred questions to the college’s lawyer, Andrew Cadot, who works in Portland. Cadot could not be reached for comment Monday evening.

According to its Web site, Mid-State College offered accounting, business management, early childhood education, medical assistance and other business and computer courses.

The Web site said the Augusta campus of Mid-State College began in 1867 as Dirigo Business College. Through the years it was known as Shaw Business College, Maine School of Commerce, Gates Business College, Augusta School of Business, and the Mid State Business School before taking on its current name in 1982.

The Auburn campus started in 1916 as the Auburn Maine School of Commerce, according to the Web site.