The Luther Seminary Board of Directors approved on February 5 the final $1 million repayment of a loan from the endowment.
Faced with financial challenges in 2012, Luther Seminary borrowed $7 million from the endowment to cover operating deficits. In 2014, $6 million was paid back with the sale of seminary-owned apartments and the remaining $1 million was to be repaid over a 10-year period with interest.
Given the seminary’s position of financial strength, the board approved paying off the entire balance in February, avoiding another 18 months of payments and interest. This action closes the chapter on the 2012 financial challenges followed by a period of hard work, diligence, and generous contributions resulting in Luther Seminary having a strong financial position moving forward.
Contributions to Luther Seminary have grown 24% since 2012, and the seminary’s endowment has increased by 40% over the same period. For fiscal year 2020 ending last June, the seminary had a net income of $15.7 million. Thanks to our Jubilee Scholarship strategy, enrollment is stable.