RALEIGH, N.C. -- One of North Carolina's oldest historically black private universities has landed a $31 million federal loan that shifts its debt from Bank of America to taxpayers.
The News & Observer of Raleigh reported Wednesday that Shaw University secured the loan with help from North Carolina Congressman Bob Etheridge, a Democrat.
The deal shifts millions the cash-strapped Raleigh university owed Charlotte-based Bank of America to the U.S. Education Department.
A memo from the school's interim vice president, Lee Monroe, says the deal allows Shaw to stretch repayment over 20 years, reduces collateral and drops the interest rate nearly two percentage points to about 4 percent
About 2,700 students attend Shaw.
Information from: The News & Observer
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