Grant money and private donations will be used to close out approximately $80,000 in unpaid student account balances owed by new and 2020 graduates of Philander Smith College, the school announced in a statement.
Roderick Smothers, president of the private institution, made the surprise announcement at the May 8 commencement.
"If you've got a balance, know that your balance is no more," Smothers told the new graduates, who cheered loudly in response.
A $54,000 grant from the Jack and Jill Foundation's College GAP Fund is being used to help pay off the unpaid accounts. Philander Smith is a historically Black college in Little Rock with a graduating class of about 175 students this year and 120 students in 2020.
While this does not eliminate all debt incurred by the new grads to pay for their education, "it will certainly allow them to receive their diplomas immediately," Smothers said this week in a written statement.
Colleges commonly withhold transcripts or credits over unpaid balances owed to the schools. Such balances can sometimes be tied to housing or other fees in addition to tuition charges.
"The recipients of the JJ College GAP Fund are so deserving of this assistance. They are bright, talented students on the brink of graduation with a small unmet financial need," Pier Blake, executive director of the Jack and Jill Foundation, said in a statement released by the college.