The Board of Trustees of St.Paul's College in Virginia has decided to close down the school formally on June 30 until another financial resource can be discovered to run the campus.

The college could neither secure an accreditation from the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) after losing it in the spring of 2012, nor could it repay the loans it had acquired from the Bank of America. The bank then forced the trustees to shut the school down.

"This is tough for a small town like ours," Lawrenceville Mayor Doug Pond said of the "70 or 80″ jobs that may be lost and the overall economic impact.

For the past two years, the 125-year-old historically black college has been suffering severe financial pressures that left the college in a $3 million debt and fewer enrollments. That led to the scrapping of certain athletic programs from its curriculum and laying off a number of its small faculty and staff.

The final attempt to resuscitate its financial resources came when the college decided to merge with Saint Augustine's University in Raleigh, N.C. However, that consequently failed in May. Saint Augustine's acquisition was disapproved stating that the deal was 'not a fiscally responsible option.'

After ceasing its operations on June 30, the college will concentrate on transferring its current students to other institutions.

"The time deadlines associated with our accreditation issues with SACSCOC and the termination of the proposed merger require our Board to take this action in the best interests of our students," said Oliver Spencer, Ph.D., chairman of the Saint Paul's College Board of Trustees.

Oliver also called the failed merger "especially disappointing in view of our very successful completion to the 2012-2013 academic year and the graduation of 51 students just weeks ago."

Walter Kimbrough, Ph.D. , the president of Dilliard University termed the board's decision, to shut down Saint Paul's College, as 'bold and responsible. "It is always sad when we see a great, historic institution close," said Kimbrough.

The college officials sent a letter to its students on June 3, informing them that they are no longer enrolled at the school. The letter also requested students to approach the school's Student Center for counselling, academic and financial aid advise by the administration.

 On June 14-15 the school is set to hold an 'information session' for the 113 students whose financial aids will be directly affected by the school's closure. Other college representatives will also be invited to the event to meet with students and probably invite them to their respective campuses.

Rev. Joseph Green, former Rector of Grace Episcopal Church in Norfolk said the Board approached the bank to seek more time for their loan payment but they refused blatantly. As a result, the bank got hold of all the school's endowment funds in May to recover the debt.

"If we could have worked out something with the bank we could have avoided all this," said Father Green. "This is a sad day for this HBCU and the Episcopal Church and the school's historic importance. "I hoped this day would not come because we are about to lose some great programs which have created a lot of great scholars and people," he continued.