Senate pushes ahead with SC State loan consolidation

The S.C. Senate Finance Committee approved a proposal Tuesday to consolidate and help repay most of $19 million in loans owed by S.C. State University, a move that could help the financially struggling college keep its accreditation.

The committee voted 13-6 to send the bill to the Senate floor for debate. The state would forgive $1 million a year in S.C. State loans if the school avoids a budget deficit.

Sen. Tom Davis, R-Beaufort, raised concerns that senators were turning loans into a grant. Sen. Darrell Jackson, D-Richland, said the proposal forces the state’s only historically black public college to be fiscally responsible, while repaying $355,000 a year.

The loans would be repaid by 2031 under the Senate plan. The S.C. House has proposed forgiving S.C. State’s biggest loan, valued at $12 million

Accreditors placed S.C. State on probation for two years because of its financial problems from falling behind on bills as enrollment dropped.

Andrew Shain

This story was originally published April 5, 2016 at 4:23 PM with the headline "Senate pushes ahead with SC State loan consolidation."