Greensboro College, a Methodist liberal arts school in North Carolina, has offered its entire campus and its $12 million endowment as collateral on a loan. The college owes Bank of America $16 million.
The Greensboro News & Record quotes a former board member:
"It is shocking. It is great cause for concern," said Greensboro businessman Richard Levy, a former trustee who, like some current trustees, said he was unaware that the college was so deep in debt.
"We knew that the debts would come due at some point," said Levy, whose term ended last fall. "I do remember thinking, 'Is the college generating the kind of revenue that could pay that off?' One certainly would have expected that the number would have gone down instead of up."
Read the entire article in the News & Record here.
Update:
Inside Higher Ed investigates. Read the article "Seeing Red in a Land of Green" in the July 27 issue here.
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