Brown University entered into a $300 million loan earlier this month as Ivy League schools contend with threats from the federal government to freeze funding.
The college initiated a term loan with an unidentified lender, according to a
"Given the volatility in the capital markets and the uncertainty regarding future federal policy related to research and other important priorities of Brown, the university is fortunate to have a number of sources of liquidity, including commercial paper programs, bank lines and the private and public debt markets that are available to help us manage our finances and priorities during this period," Amanda McGregor, a spokesperson for Brown, said in an emailed statement.
Colleges that are in the Trump administration's crosshairs have sought alternative funding sources as they face the possibility of less federal support for research. The New York Times
The Providence, Rhode Island-based university has not received any formal notification from the federal government of the large-scale grant terminations that have been reported in the media, according to the university spokesperson.
A government task force this week announced that it plans to freeze $2.2 billion of multiyear grants for Harvard University. Harvard
Brown "chose to negotiate directly with a lender in order to tailor the loan to our particular objectives" rather than enter the public taxable debt market, McGregor said in the statement.
Another Ivy League school, Cornell University, increased the size of its taxable commercial paper program in a move that could help the school preserve cash.
