ATLANTA (AP) — Morris Brown College has settled a nearly $10 million debt for pennies on the dollar with the U.S. Education Department.
The college announced Tuesday that it had transferred money to the federal government to pay off the long-standing debt. The historically black college in Atlanta reached a settlement with the Education Department in April that $9.4 million in debt would be forgiven if Morris Brown paid off the remaining $500,000.
The debt represents years’ worth of unused federal aid that the school was supposed to return to the government, and it as uncovered in a federal audit of the college’s finances between 1999 and 2004.
Morris Brown lost accreditation in 2003 over the financial problems, among other issues. The college is seeking accreditation with the Transnational Association of Christian Colleges and Schools.