The anonymous donor gave 142,000 dollars to help pay the tuition and fees for 26 students.
Executive Vice President for External Relations, Kent Barnds, says the donor wanted to help some students directly who owed a lot of money to the college.
"It's not unusual to have an anonymous donor but it's sometimes unusual to have an anonymous donor who is so direct in how they'd like those resources to be used."
A committee of administrators decided which students with unpaid balances would benefit the most from this gift to the college.
"I think this is a case of inspired philanthropy and I do think we're seeing more people who are inspired with their philanthropy to directly impact students. There's certainly a lot of conversation about affordability and debt."
Augustana already has a special fund, developed by a donor and funded by gifts, called Close the Gap that helps high-achieving students pay for their education.
