The school said the unpaid money had added to the college’s $7 million deficit.
According to the university, some students’ balances were as high as $40,000 and had stretched over a two-year period.
Interim President Raymond Burse said KSU had tried to contact and counsel students over the past 18 months for not meeting their financial obligations.
Although he admitted that the circumstances were "terribly unfortunate," he said the college "must take the necessary steps to protect [its] financial stability."
According to KSU, 111 students who had balances less than $1,000 have had their debts paid by the university.
$65,000 in scholarships and book vouchers have also been ordered by Burse for 42 students about to graduate this year or who are first-time students.
Kentucky State University encouraged any student who had questions about their accounts to contact the college’s financial aid office at (502) 597-5960.