Louisburg, N.C. — The Louisburg College Board of Trustees has dipped into its unrestricted funds to pay off $2 million in debt as part of a plan to regain financial stability.

The private college's $15 million in annual revenue exceeds its expenses by more than $500,000, which the Southern Association of Colleges and Schools said is too tight a margin. The organization has threatened to revoke the school's accreditation if the financial picture doesn't improve.

Vice President for Finance Belinda Faulkner presented a plan to the college trustees last week that uses unrestricted funds to pay down debt, restricts short-term borrowing and ensures any borrowing would be repaid during the same year.

"Our financial status has improved, and the immediate outlook for Louisburg College is brighter," President Michael Clyburn said in a statement. "The groundwork has been laid for financial planning that brings institutional vitality and confidence about the days ahead."