This summer it was revealed that an interest-free loans had been given to professors by New York University.
Part of the loan was to be forgiven and considered as compensation.
State Rep. Jack Franks (D-Marengo) didn’t like what he read and wonder if Illinois universities were doing the same thing.
He serves as Chairman (or as he puts it on his government website “Chairperson”) of the State Government Administration Committee.
So he sent letters of inquiry to all the state universities.
He also sent letters to all the private universities in Illinois.
The state universities replied, of course.
They are funded by the Illinois General Assembly.
None said they were giving such loans to professors.
Five private universities–the University of Chicago, Loyola, North Park, Northwestern, and Lake Forest College–replied they had made such loans.
So, Sun-Times columnist Michael Sneed featured Frank’s crusade in Friday’s paper:
Although he reports no public universities were doing what he doesn’t think is a good idea, Franks has introduced House Bill 3749 to ban the practice.
“Using a public university’s financial resources to provide lavish fringe benefits is unfair to taxpayers and students,” he told Sneed.
A synopsis of the bill follows:
Creates the Higher Education Employee Loan Act. Provides that if a not-for-profit higher education institution located in this State or its foundation makes a loan to an employee or contractor of either the institution or the foundation, then the annual rate of interest must be equal to the prevailing loan interest rate in effect at the time the institution or foundation approves the loan, except that the institution or its foundation may not make a loan to an employee or contractor of either the institution or the foundation for the purpose of purchasing a non-primary residence.
Prohibits such an institution or foundation from forgiving a loan made to an employee or contractor of either the institution or the foundation.
Requires the Board of Higher Education to adopt enforcement rules, which may include the imposition of a civil penalty.