ATLANTA (AP) – The historically black Morris Brown College is expected to settle nearly $10 million in debt for pennies on the dollar in an agreement pending with the U.S. Education Department.
The school has spent the past decade mired in financial woes, ineligible for federal student aid and struggling to survive. Only about 85 students are currently enrolled.
The Associated Press has obtained a letter dated April 7 from the Education Department that says it will forgive more than $9.4 million in debt, provided Morris Brown pays the remaining $500,000.
President Stanley Pritchett says the deal will help the college overcome a major hurdle in its efforts to regain accreditation.
Pritchett says the settlement agreement, which must first be approved by the Department of Justice, could be finalized by May 1.
Morris Brown would have 90 days to make the payment.