COLUMBIA, S.C. (AP) – South Carolina State University would be free from $12 million in state loans but would have to repay $6 million over the next 16 years under a budget clause approved by legislators.
Lawmakers negotiating a state budget compromise agreed to the terms Friday.
They hope the loan forgiveness will help the state’s only public historically black university keep its accreditation.
The Southern Association of Colleges and Schools will decide S.C. State’s fate next month. It’s been on probation for two years.
The university board’s chairman, Charles Way, says knocking off $12 million in debt helps tremendously.
It will be forgiven over three years as long as the college maintains its accreditation, continues improving its finances and increases enrollment.
The state’s financial oversight board approved both loans in 2014.