New federal budget would forgive $111 million in FAMU loans

The FY 2020-21 federal spending bill that passed by Congress on Monday includes good news for FAMU, as it also cancels more than $111 million in FAMU debt held by the U.S. government, said U.S. Rep. Al Lawson.

“I’m proud to have worked with my colleagues in the House and the Senate, to eliminate the federal debt not only at FAMU, but all HBCUs, who have been hard hit by the coronavirus pandemic,” said Rep. Lawson.  “As COVID-19 has severely impacted the higher education community, particularly low-resourced HBCUs, we felt cancelling their debt would give them a fresh start, allow them to focus more resources on educating students.”

"This will mean a brighter future for thousands of young people as our communities will also benefit from their knowledge, skills, and expertise for years to come,” Lawson added.

"This is game-changing for HBCUs.  It's an unprecedented gift to FAMU and comes during a very challenging year," said FAMU President Larry Robinson. "We are extremely grateful." 

In 2019, FAMU borrowed $126 million from the HBCU Capital Finance Program to construct new dorms, and refinance the debt on its residence halls.  The HBCU Capital Finance Debt Relief Act, discharges over $1.3 billion in debt held by Historically Black Colleges and Universities (HBCUs), was included in the spending deal.  

The bill currently awaits President Trump's signature.