Life has just gotten much harder for some elite school administrators.
In the wake of the compensation scandal centering on New York University loaning millions of dollars to select faculty and administrators for vacation homes purchases, the school’s Board of Trustees have axed this special perk from future budgets:
The New York University (NYU) Board of Trustees, on Wednesday, announced the school will end a program which afforded sweetheart loans to help top administrators and faculty purchase luxury vacation homes.
“All mortgage assistance… must conform… to restriction that they be used only for primary residences,” the trustees wrote in a university-wide email.
The announcement was apparently made in response to backlash the school received from revelations that it had paid-out tens of millions of dollars to help star faculty and staff purchase vacation luxury getaways in places like East Hampton, Fire Island and Litchfield County.
Some of those loans had interest rates of under two-percent and some had forgiveness clauses built in.
For example, the principle on a $200k loan taken by University President John Sexton declined each year by 20 percent until it was completely forgiven.
NYU students, meanwhile, pay $63,537 per year for room and board with significantly higher interest rates. Many graduate with more than $200k of college debt.
In the same Wednesday email, trustees also announced that President Sexton will depart the school in 2016.
NYU to end luxury home loan program for elite faculty and administrators (Campus Reform)