$1M, zero-interest loan OK’d for HSU

A zero-interest, $1 million loan for Henderson State University received approval Friday from the Higher Education Coordinating Board.

The board was tasked with reviewing the “economic feasibility” of the borrowing, the latest step taken to try to shore up the university’s finances.

The repayment period is 10 years, with $100,000 to be paid each year, according to documents presented to the board, and the money will be used to replace the roof of a campus library as well as equipment used to heat and cool buildings on the Arkadelphia campus. The loan source will be the state Sustainable Building Design Revolving Loan Fund.

Financial troubles emerged as HSU ended its fiscal 2019 with a deficit and cash shortfall, which the university’s top administrator at the time described as the result of unpaid student accounts.

The university is set to join the Arkansas State University System, and ASU System President Chuck Welch told board members that work continues to strengthen the university.

“We are far better off than we were one year ago. But this is a multiyear turnaround plan,” Welch said.

A separate presentation to the board on fall enrollment at colleges and universities showed that among public universities, Henderson State had the largest year-over-year percentage drop in enrollment. The HSU campus enrolled 3,163 students this past fall, down 21.5% from the 4,027 students it enrolled in fall 2019.