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Fayetteville State University paid off $1.6 million of tuition debt owed to the North Carolina institution by more than 1,500 students, the Fayetteville Observer reported.

Outstanding tuition debt that was not covered by federal grants or loans was paid off by the university. All students who attended the university between fall 2019 and spring 2021 now have a tuition balance of zero.

The university paid the debt using funds it received through the Higher Education Emergency Relief Fund III -- a part of the American Rescue Plan. The rescue plan provided $39.6 billion to colleges and universities in response to the pandemic.

FSU will also use $4.7 million in emergency relief funding to pay for summer courses for 1,400 undergraduate students, the Observer reported.