Holy Cross is one of more than 200 colleges that applied to participate in the Second Chance Pell Pilot Program.
The 140 inmates at the prison will be moved to prisons in Branchville or Edinburgh, and its 36 staff members will be offered vacant positions at other prisons.
The agreement reached between the ACLU and the Indiana Department of Corrections.
In 2012, a judge found that the treatment of mentally ill prisoners violated 8th amendment protections against cruel and unusual punishment.
Cody Morris and Troy Thomas were incarcerated at a minimum security facility in Edinburgh and were part of a trash pick-up crew working in the Columbus area.
Changes made to the Indiana Criminal code set to take effect this summer will place a renewed emphasis on Community Corrections.
At the Madison Juvenile Correctional Facility in southern Indiana, one teacher is encouraging her students to look for science everywhere.
The Department of Corrections recently graduated its first class of students under its vocational training program for prisoners.
The DOC expects to sign contracts with the two colleges, and officials say the new colleges will take over August 1.
The Department of Corrections and Ivy Tech allowed their two-year contract to expire after disagreements over funding and staffing.