Pennsylvania to forgive $30M in loans to Cheyney University

Pennsylvania's state-owned university system has agreed to forgive $30 million in loans to a financially struggling historically black college if the school can maintain a balanced budget over the next four years.

The chairwoman of the system's board of governors says the plan approved Tuesday gives Cheyney University a "path forward" as it tries to close a $7 million budget gap and preserve its accreditation. The school has until Sept. 1 to submit a plan addressing financial deficiencies to its accrediting body. The chairwoman say losing accreditation would almost certainly force the school's closure.

The board also gave the university permission to cut academic programs without allowing current students to finish out their studies.

The school's interim president says they must focus limited resources on the most in-demand programs.