The Executive Committee of the General Board of the African Methodist Episcopal Church has voted to forgive over $4 million in debt owed to it by Morris Brown College, school officials announced Tuesday.

The college, located near Mercedes-Benz Stadium, has agreed to create a $1.5 million scholarship for AME members worldwide.

Morris Brown College is seen Friday, April 22, 2011 in Atlanta. Morris Brown College could soon settle nearly $10 million in debt for pennies on the dollar in an agreement pending with the U.S. Education Department. The Associated Press has obtained a letter dated April 7 from the Education Department that says it will forgive more than $9.4 million in debt, provided Morris Brown pays the remaining $500,000. (AP Photo/David Goldman)

College officials said the decision is an important step in its effort to regain its accreditation, which was revoked in 2002. Because Morris Brown is not accredited, students are not able to receive federal loans which are critical to paying tuition at most colleges.

“The removal of the long-term debt improves our position … which is a critical part of the accreditation process. We are thankful to the AME Church,” said Shermanetta Carter, the college’s chief financial officer.

Head over to the Atlanta Journal Constitution to read more.