Alumni offer to co-sign loan for St. Louis School

P. Gregory Frey
P. Gregory Frey

HONOLULU (HawaiiNewsNow) - Like other private educational institutions, St. Louis School competes for students. The all-boys Catholic campus wants to grow enrollment.

"We're not where we would want to be, but we're certainly not dramatically reduced to levels where we have to change things," St. Louis Alumni Association president P. Gregory Frey said.

But when it comes to finances, the school does want change. Years ago it borrowed money for capital improvements, including shoring up buildings that are over a hundred years old.

"Roofs alone for instance, over $2 million. Some of that was taken out on notes and loans," Frey said. "If the school is able to retire some of those loans they will be in a position of profitability as opposed to stability."

The alumni association is offering to co-sign a loan so St. Louis can consolidate debt and have money in reserve. The amount is $6 million to $7 million.

"We're not spending any money here at all. I need to make that clear. All we're doing is to lend our support to the school by co-signing, not paying," Frey said.

One week ago, the school posted a letter on its web site, saying adopting the financial plan could give St. Louis a fresh start.

The alumni association has two charitable trusts that give the school money every month. Frey recently presented St. Louis with a pledge for over $2 million.

"It's just family helping family. It's ohana helping ohana. Anybody who walked through the slopes up at the school, went through the classrooms, or has any connection to the school is passionate about it," he said.

The Marianist Center of Hawaii also proposed an option to help St. Louis consolidate its debt. The school chose the alumni's plan.

Follow Jim Mendoza:   

Copyright 2013 Hawaii News Now. All rights reserved.