status, a South Carolina newspaper has reported.

Many Bermudians attend the university in Columbia, South Carolina, often with the help of scholarships arranged by Rev. Trevor Woolridge MP of the Progressive Labour Party.

The State, a 135,000-circulation daily based in Columbia, reported this week that the school is $600,000 in debt and "its status as an accredited institution, achieved just two years ago, could be in danger.'' The Southern Association of Colleges and Schools placed Allen on "a warning list'' last December "as an institution not living up to the regional organisation's standards,'' the newspaper said.

"The situation at Allen University at this time is not good -- it is very bad,'' Allen governing board chairman Bishop John Hurst Adams was quoted as saying in a memorandum distributed to leaders of the state's African Methodist Episcopal Church, which supports Allen.

The newspaper said the board wanted to know whether the school in downtown Columbia should continue as a four-year liberal arts college or fill another role.

It could become a two-year college or seminary.

Mr. Woolridge, an Allen alumnus, could not be reached for comment last night.

Rev. Adams was quoted as saying the school had trouble attracting both students and money. Allen had 290 students enrolled during the just-completed school year and graduated 30 on May 7.

The article said a check by the Department of Education showed Allen had not submitted its last five required audits on student financial aid since 1985.

Rev. Adams was quoted as saying he believed the "oversight'' had been corrected.

Allen won SACS accreditation in June of 1992 after a three-decade struggle to meet criteria that included financial stability. Rev. Adams said he thought the school was placed on the warning list because of failure to file timely reports.

Also, employee's paycheques were not being distributed on time and Social Security payments were late, Rev. Adams said.

"All small private schools are financially fragile,'' he said. "Allen is no different. It's just smaller than most. But that doesn't mean our problems are small. They are not.'' The Royal Gazette reported in January of 1993 that Allen had made $468,000 available for 13 young Bermudians to attend the 123-year-old school.

School president Dr. Collie Coleman, who visited Bermuda with his wife, credited Mr. Woolridge with arranging the scholarships. The State reported on Tuesday that Dr. Coleman announced he would step down in July.

The AME provides the school $1.5 million annually to operate.