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Dr. Barton on the Role of Debt

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Video Details

Duration: 49 seconds
Country: United States
Language: English
License: Dotsub - Standard License
Genre: None
Views: 24
Posted by: significantsys on May 27, 2015

You know, many colleges wonder what role debt should play in building facilities and advancing the mission, and there's no one right answer because it varies a lot. As a general rule of thumb, I believe you can use debt for auxiliary enterprises like dormatories, cafeterias, and things like that that are self-amortizing and can be self-amortizing. For small colleges and universities, I really discourage debt for academic buildings, for support facilities that are not self-amortizing. I really encourage universities to engage in aggressive capital campaigns to raise the money for those kind of projects.

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