Despite its own financial struggles, the State System of Higher Education has forgiven mover than $30 million in loans to Cheyney University. In exchange, Cheyney has to prove it can retain its accreditation and strike a balanced budget for the next four years. That starts with closing a $7 million gap in this year’s $35 million budget.
The Middle States Commission on Higher Education is requiring the State System’s smallest university to submit a finance plan by September 1st or risk losing accreditation, which would force the school to close.
At a special meeting on Tuesday, the State System Board of Governors approved the loan forgiveness, which would be done incrementally…one-third if Cheney cuts $7.5 million from this year’s budget and keeps a balanced budget next year, and two-thirds more if it maintains a balanced budget for the next two fiscal years. To do that, the university will cut programs and staff. Usually, program cuts mean students will be given the chance to finish their studies before a major is eliminated, but the Governors on Tuesday agreed that the cuts would be immediate, and students will be allowed to transfer to other State System schools to complete their degrees.
