So my college is currently in 4 million dollars of debt. I’ve tried finding out how that is even possible for them considering they are land grant university, however they are also an hbcu. Were they misappropriating funds? If they were how are misappropriated funds usually used and what are the consequences of it for colleges?
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Colleges spend lots of money. Faculty cost money, staff costs money, buildings cost money to build/maintain/upgrade, utilities cost money, landscaping costs money, extracurriculars and organizations cost money, sports cost money, etc. Most large entities like a university, business, etc. need to borrow money to find large projects. And until that loan is repaid, there is debt. Doesn’t mean something bad, shady, illegal happened. It just mean that a university needed to build a new dorm or science lab and intends to pay for the construction over time, hopefully generating enough alumni donations or tuition to cover the payments as they’re due.
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