Lon Morris College (File)

TYLER (December 6, 2012)--A bankruptcy judge in East Texas has set a Jan. 14 sale date for the assets of Lon Morris College.

The oldest junior college in Texas filed for bankruptcy protection in July and on Wednesday a judge in Tyler agreed to allow a Dec. 13 auction date to be pushed back a month.

The judge also authorized the school to borrow as much as $500,000 to help pay auction fees, utilities, insurance and other administrative costs, but capped any initial loan at $150,000.

Fall classes were suspended at the 158-year-old United Methodist complex because U.S. law bars federal assistance for students at schools that file for bankruptcy.

The Texas attorney general's office is investigating how the college spent a $1.3 million endowment.