Chad Hays

Higher Ed
6:00 am
Mon February 24, 2014

Legislation Would Block Faculty Loans

Illinois lawmakers are considering whether to crack down on universities giving a certain type of interest-free loan to faculty. Except it doesn’t seem to be happening in Illinois.

State Rep. Jack Franks, a Democrat from Marnego, says the legislation is meant to prevent universities from abusing their tax-exempt status.

“What we found was that tax-exempt universities were giving interest-free … loans, and also forgiving loans, for second homes for professors, at a time when students are taking on excessive debt," Franks says.

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