PASSHE Throws Cash-Strapped Cheyney University A Lifeline
PHILADELPHIA (CBS) -- Cash-strapped Cheyney University could live to see another day after the Commonwealth announced it will forgive tens of millions of dollars of the school's debt. Bu there are more hurdles to overcome.
The Pennsylvania State System of Higher Education or PASSHE will forgive about $31 million worth of loans it gave to help Cheyney pay operating expenses, but only if Cheyney cuts about $7.5 million in expenses and balances its budget for four years.
"Cheyney needs to right its finances, to operate within its means," said spokesman Ken Marshall.
Marshall says PASSHE wants to see Cheyney succeed, and it's hoping this step by the system will prove the university should keep its accreditation when it submits its report September 1.
"Demonstrating that the university is serious and the state system is serious about its future," Marshall said.
Attorney Michael Coard is co-founder of Heeding Cheyney's Call. The alumni group called on Governor Tom Wolf to help the institution. He notes PASSHE's help is merely a lifeline of aid given years of declining enrollment.
"We are cautiously optimistic," Coard said. "If you build up the academic programs, the students will come."
There was immediate word from Cheyney University.