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GREENSBORO — When Bennett College For Women learned last week it had been placed on financial probation, President Julianne Malveaux was shocked.

But her usual cool demeanor had returned by Thursday when she addressed a room full of Bennett faculty, staff and students. She dismissed the findings as a mere “bump in the road,” declared the college in better financial shape than ever, and announced a

$1 million donation made to the school on Wednesday.

“Quite frankly, the institution is in better financial shape than it has been in over a decade,” Malveaux said.

Malveaux spoke in the Global Learning Center, one of several new building projects recently completed at Bennett College.

But it was the refinancing of a loan to allow Bennett to pay for those buildings that set it back financially in the eyes of the Southern Association of Colleges and Schools, which placed Bennett on a six-month financial probation last week.

When Malveaux arrived in 2007, Bennett had an $8 million loan debt. That loan was refinanced to provide Bennett with the money to build the Global Learning Center, an honors dorm, a day care center and make upgrades to its wellness complex.

But Bennett had to pay a $1.1 million prepayment penalty to do so, Malveaux said.

That, as well as a donor defaulting on what Malveaux described as a major pledge, showed up as losses in the college’s books. Malveaux said the college had paid scholarships to students who had been promised aid in anticipation of that pledge.

“Those two losses were extraordinary losses,” she said.

Given that those issues were one-time events that occurred last year, Malveaux said she expects Bennett to be removed from probation at the end of the year.

SACS officials will meet with Bennett leaders again in October to review recent audit reports, which Malveaux said show the college is in the black.

“The SACS finding is a bump in the road, but that’s all it is. It’s just a little speed bump,” Malveaux said.

The college has faced financial and other problems in the past, including another SACS probation. In 2002, there were also rumors the college was on the brink of closing.

But this past academic year was monumental for Bennett. The campus debuted its first new construction in 28 years. A second phase of projects, which includes a new dorm and library, is dependent upon more money being raised.

SACS had reaffirmed the college’s accreditation for 10 years in 2009.

“While we have this amazing momentum, I cannot understand this accrediting organization throwing ice water on Bennett’s volcano,” Malveaux said. “But they have done so. We will work with it. We will live with it. We have no choice.”

Malveaux wasn’t the only one surprised by SACS’ decision.

“I was confused. I just didn’t understand it,” said Geraldine Warren, a 1966 Bennett graduate, who initially heard about the college’s probation on the news. “I mean, we’re doing so well.”

But Warren said she expects her fellow alumnae to step up and help Bennett out of its current situation.

“I’m very inspired by what I heard,” she said after Malveaux’s talk. “I think everything will be resolved. Bennett has a long history of alums giving financial support and other support.”

Incoming freshman Delisha Smith said she was comforted by Bennett officials’ insistence that the probation would not affect students.

“I liked the fact that she (Malveaux) said a lot of the money that they used was for scholarships for us,” Smith said.

Malveaux said Bennett does not have any widespread financial troubles. The college has not laid off any employees, she said, and has no plans to do so. Faculty and staff have not taken pay cuts, and enrollment is expected at just under 800 students for the fall, which is what it was last fall.

She declined to name Wednesday’s $1 million donor, but she said half of the gift will go toward scholarships.

Contact Jonnelle Davis at 373-7080 or jonnelle. davis@news-record.com