Let’s hope this college’s students are better at learning math than its Financial Aid office. Here’s what happened: 

For years, Birmingham-Southern College in Alabama has been mistakenly adding Pell grants to students’ financial aid packages, instead of subtracting them. As a result, students have been getting at least $5,000 too much aid.

The estimated cost to the school: $5 million a year – possibly for the last 20 years!

A recent budget audit revealed the error which, combined with a deflated endowment from the recession, has hit the school hard. The massive bungle caused employees to resign from the finance and financial aid offices, as the school figures out how to cut spending by about $10 million – or 20% of its budget.

While nothing has been decided, wage and hiring freezes are likely, but that’s just the start. Administration and faculty are working to develop a long-term plan to cover for the loss without sacrificing educational quality.

Any suggestions for the beleaguered private college? Offer your thoughts in the comments section.

Tags: Birmingham-Southern College, financial aid error, pell grants