Colorado College officials said Friday that it plans to pay the college nearly $300,000 for two years of students who attended the school from 2011 to 2016.
The school plans to spend the money to fund its academic offerings, faculty hiring, facilities, student and staff health and safety programs and other services.
The college has spent millions of dollars on students since it opened in 2010, including about $500,000 last year for tuition and fees.
The university is also paying $150,000 a year to a company that runs its campus and is owned by the Colorado Economic Development Corp. The deal is contingent on the school meeting its obligation to spend about $100 million on the college and its campus.
The agreement also requires the college to pay about $1 million annually in severance.
Colorado College President Mike Kreidler announced in January that he was stepping down in November after nearly a decade in the job.
Kreidlers retirement agreement was signed with the school’s board of trustees and trustees voted to terminate him in March.
He has been working to rebuild the institution.
The Colorado Economic Partnership, a non-profit, will handle the money and is expected to begin reimbursing students next month, said the college’s interim vice president of financial services, Dan Ritz.
The $1.8 million payment is expected in July.
The state Education Department said in a statement that it will reimburse Colorado College for any costs it incurs to reimburse students for their tuition and for their housing costs.
Colorado college officials said in May that the school will pay more than $1 billion to settle lawsuits from former students alleging that they were discriminated against by former students.
The colleges board approved the severance payment on Friday.
Kreitler had announced plans in December to sell the school and that it would take $10 million from the college.