St. Louis School Principal Pat Hamamoto says 580 students need to be enrolled to break even.
Last year, the school only had 557 students.
Enrollment dropped again to 540.
"We are all losing enrollment. Enrollment is becoming an issue and as enrollment drops financial challenges become a lot more intense I want to say, and they move to the forefront," Hamamoto said.
St Louis is the only all-boys schools offering a catholic education for grades 6-12.
Damien and Iolani made the decision to include girls and other all-girl schools like St. Francis and the Priory are including boys to stay afloat.
While St. Louis in the past considered merging with Sacred Hearts, governance issues remain an issue in that option.
The school is asking the Alumni Association to help co-sign for a loan to help keep the school stable.
Members are being asked to vote for a $5.2 million loan to help the school retire its capital improvement debt.
There's also a $2 million dollar line of credit to keep the school afloat for the next year.
"It's going for monthly needs. It will be for existing debt. It will be for whatever the administration deems appropriate. We have faith in the school and the administrators to do the right thing," said P. Gregory Frey.
The school hopes to use some of the money to complete work on a new weight room and to renovate two of its aging structures.
As part of its master plan, St. Louis is also planning on a new athletic center named for benefactor Clarence T.C. Ching.
The school is asking the association to put up the land under it’s Moiliili club house and to assign the lease rent it gets from land under the First Hawaiian Bank and a new Japanese bistro as part of the loan deal.
The notice of the special meeting has raised eyebrows and has tongues wagging, but Hamamoto assured the school isn’t in any immediate danger of shutting down.
"St Louis will be here tomorrow, and it will be here for the future, and that's what we are working for and that's what this partnership is all about," Hamamoto said.
Annual tuition at St Louis is $14,000.
Both Hamamoto and Frey declined to say much about another loan option proposed by the Marianists --the order that the school operates under.
That is expected to be detailed at the association meeting on December 5.