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Amendment to university loan bill passes through Illinois Senate

Abstract:
The Illinois State Senate has approved a bill that would allow state universities to borrow money without asking the state for permission. Chair for the University Planning and Budget Council John Navin said the bill would be a short-term measure to help manage cash flow....

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Nolan Sharkey

posted 3/02/10 @ 11:28 AM CST

Hey Rosie, I could be wrong, but in the 10th paragraph we don't call the portion of the legislative branch the House, but instead it is called the General Assembly. -Your favorite person.

Joey

posted 3/03/10 @ 1:13 PM CST

This can be a dangerous move. If the university borrows money, eventually the lender would want to be paid back (with interest, most likely). If the state continues to fall behind and miss payments, then when it comes time to make payments, the university may not have the money to pay them back, forcing them to take money out of other funds, thus just deferring the problem instead of solving it.

You should never borrow money unless you are certain you'll be able to pay it back. Since the state is being useless when it comes to providing money it owes, the university likely will not be able to say, with certainty, that it can repay debts on loans.
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