ATLANTA – 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, according to a letter obtained by The Associated Press.
In the April 7 letter, the Education Department said it will forgive more than $9.4 million in debt, provided Morris Brown pays the remaining $500,000. The deal would help the historically Black institution overcome a major hurdle in its efforts to regain accreditation.
“We have been working on getting this debt addressed for a year,” said Morris Brown College President Stanley Pritchett. “This is a game-changer for the college. There are other financial challenges, but this will help to open the door … to resolving our other issues.”
Department of Education spokesman Justin Hamilton told The Associated Press that the agency could not comment on the agreement directly.
“We’re aware of the situation,” Hamilton said. “We do recognize the important role of historically Black colleges and the need to help preserve their important legacy.”
Pritchett said the settlement agreement could be finalized as soon as May 1 and that the payment would be due within 90 days of the signed deal. The letter, signed by Department of Education counsel Russell B. Wolff, says the agreement must also be approved by the Department of Justice.
Known for producing many of Georgia’s Black educators, Morris Brown College was founded by former slaves in 1881 and has roots in the African Methodist Episcopal Church.
