AAMU Board Executive Committee Meeting
Board Approves Execution of Loan Forgiveness Documents
The Executive Committee of the Alabama A&M University Board of Trustees met virtually Friday, February 26, 2021, to focus on the University's participation in the HBCU Capital Financing Program and susbequent loan forgiveness measures under the Consolidated Appropriations Act, 2021 (Pub. L 116-260), as well as to set dates for the next regular meeting.
According to President Pro Tempore Jerome B. Williams, the Act provides that the U.S. Department of Education repays the outstanding principal, interest and fees of the HBCU Capital Financing Program that were disbursed under the HBCU Capital Financing Program by the cutoff date of December 27, 2020.
According to AAMU Senior Vice President Clayton Gibson, the Act provides that the U.S. Department of Education repay the outstanding principal, interest and fees for loans that were disbursed under the HBCU Capital Financing Program, as of the cutoff date of December 27, 2020. He also noted the loan forgiveness terms will result in more than $82 million in principal savings for AAMU, comprised of the 2015 loans that have outstanding balances of approximately $78 million, and another $4 million that was related to the 2019 loan for various campus renovation projects and to fund the ongoing construction of the Event Center.
The meeting Friday allowed the Executive Committee to accept and approve the terms of the loan forgiveness program by the required date of March 5. The Executive Committee set the new date for the regular and committee meetings of the Board of Trustess for March 25-26.