(WTVM) - Mayor Teresa Tomlinson's alma mater will remain open.
Sweet Briar College in Virginia had been scheduled to close its doors for the last time in August because of mounting debt and declining enrollment.
A mediated settlement was announced Saturday, June 20 and $12 million raised by alumnae will be used to keep the school afloat in the upcoming academic year.
Current board members will resign and new board members will be elected from those who fought to keep the school open. Additionally, restrictions would be eased on the school's $16 million endowment.
The 114-year-old school had about 530 students last spring.
Mayor Tomlinson released a statement, saying:
"This has been a tremendous effort of stakeholders who understand the importance of woman's education, particularly in today's world. We commend the Attorney General and Judge Updike for seeing the possibilities of the future of this great institution. We have a strong new leadership team and through this challenging process people have seen the value of a Sweet Briar education. If you want your daughter to be strong and able, send her to Sweet Briar College. We are thrilled with this positive turn of events."