Catawba College in Salisbury, North Carolina, has announced a $13.7 million gift from a donor who wishes to remain anonymous to retire most of the college's debt.

The gift will eliminate 75 percent of the college's debt and place the institution in a better financial position, providing it with flexibility to improve students' access to a high-quality, affordable education. According to global strategy firm Parthenon-EY, a college or university with debt service that exceeds 10 percent of expenses is at risk of going out of business. Eliminating 75 percent of its debt will enable the college to reduce debt service to 2 percent of expenses.

"We can't fully express how grateful we are to receive this unprecedented gift," said Catawba College vice president of development Meg Dees. "It allows us to create even greater opportunities for thousands of students in the years ahead by accelerating our strategic goals and providing lasting financial stability and flexibility while we continue to transform our campus."

"This extraordinary gift alters the future of Catawba College," said the school's president, David Nelson, "positioning us for financial sustainability that enables us to better provide access and opportunity for students who seek a college experience focused on personal formation as they prepare for meaningful life and work. We are extremely thankful for the donor's faith in our mission."