(SBN) – The Pennsylvania State System of Higher Education has come to the rescue of the nation’s oldest HBCU. The system’s board of governors on Tuesday agreed to forgive $30 million in loans to Cheyney University on the condition that if maintain a balanced budget over the next four years.
The move is meant to save the fledgling HBCU from shutting down.
After years of financial and enrollment trouble Cheyney was on the verge of collapse and losing its accreditation, which would would have impacted financial aid for three-fourths of the student body.
The Philadelphia Inquirer reports that that system and its 13 member universities have extended several loans to the university over the last few years.
“Cheyney University cannot survive without accreditation, period,” Cynthia D. Shapira, chair of the board of governors, said in a statement. “And today’s serious actions give Cheyney the path forward.”
The publication says Cheyney faces a Sept. 1 deadline to submit a fiscal plan.