State officials have reached a legal settlement with Luther Rice College & Seminary, agreeing to allow its students to receive state financial aid despite the Lithonia school’s Christian mission.
Under Georgia law, most public and private universities are considered “approved schools,” meaning their students are eligible for aid programs, including the merit-based HOPE and Zell Miller scholarships. But colleges of theology or divinity are excluded.
In October, Luther Rice filed a lawsuit against the Georgia Student Finance Commission, arguing the religious exclusion discriminated against the school and violated the U.S. Constitution.
The parties settled the case two months later, with the state agency approving the school for student financial aid and making it eligible for Dual Enrollment, a program where high school students can take college courses for credit.
“This endeavor was not just an opportunity to defend our religious freedom, but it was also an opportunity to demonstrate the value of a Christian education,” Luther Rice President Steven Steinhilber said in a statement. “I look forward to providing our Georgia residents an affordable biblically based education that is so vital for our time.”
Steinhilber also thanked Alliance Defending Freedom, a Christian legal advocacy group that litigated the case.
“We’re pleased that Georgia high school students can now receive dual credit by taking classes at Luther Rice and that college students who choose Luther Rice can apply for much-needed financial aid,” Alliance Defending Freedom senior counsel Ryan Tucker said. “The state should never limit educational opportunities for students based on their faith.”
Luther Rice, founded in 1962, had about 750 students during the 2023-24 school year. More than half of its undergraduate students were from Georgia, according to the lawsuit complaint. The lawsuit complaint said 59.4% of Luther Rice’s current undergraduate students are eligible for federal student financial aid.
The December settlement is the most recent victory for Alliance Defending Freedom, which has argued and won more than a dozen cases in the U.S. Supreme Court.
It helped draft a Mississippi anti-abortion law that ultimately led to the Supreme Court overturning Roe v. Wade and famously defended a Colorado baker who refused to make a wedding cake for a gay couple. In 2022, the advocacy group won an $800,000 settlement for two former Georgia Gwinnett College students after arguing the school violated their First Amendment speech rights.
According to the settlement, the Georgia Student Finance Commission agreed it won’t exclude Luther Rice from student aid programs because of the school’s religious character.
The agency must onboard Luther Rice employees so that its students can partake in state aid programs starting in the Fall 2025 semester. Those trainings and technology assistance are already underway, according to agency spokesperson Chris Green.
“We are glad this issue was resolved and look forward to adding Luther Rice College to the list of institutions eligible to receive state financial aid,” Green wrote in an email.
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