Can't Even Trust A Socialist These Days. Bernie And Wife Under Investigation

[vorlon13]

Does a $10,000,000 loan for such a small, seemingly nonviable, college strike anyone else as 'odd' ??

I don't know V, did you see some of the loans banks made during the sub-prime mortgage craze?  Only the WLB thinks that bankers are responsible with money.

Personally, I agree with Bertolt Brecht.

The numbers just don't make sense.  On average, each employee is supported by ~4 students!!!  I'd assume the folks working for the school would be making more than minimum wage and get benefits such as health care, retirement and vacation.

As Judge Judy says, "It doesn't pass the smell test!".  And that's the business plan for the school prior to any talk of a $10,000,000 loan on top of that.  Taking on another ~$45,000 in debt per student ??   And the financing cost on that ??

And I'm not on the banks at all, it's the admin of the school.  What planet are they from ??   How could this have worked ??

[Gawdzilla Sama]

Apparently, Bernie and wife are under an FBI investigation for bank fraud and have lawyered up. Those damned Wall Street Bankers! You need to be more careful with that shit Bernie Bro! Everybody's investigating everybody. Cut a fart in Washington and it gets investigated. When did you fart, and when did you know you had to fart?

Sanders' top adviser Jeff Weaver told CBS News the couple has sought legal protection over federal agents' allegations from a January 2016 complaint accusing then-President of Burlington College, Ms. Sanders, of distorting donor levels in a 2010 loan application for $10 million from People's United Bank to purchase 33 acres of land for the institution. 

According to Politico, prosecutors might also be looking into allegations that Sen. Sanders' office inappropriately urged the bank to approve the loan. 

http://www.cbsnews.com/news/bernie-and-j...e-lawyers/

You should hope you're never in court with a capital case and being tried by a jury of your peers.

[Jackalope]

And that's the business plan for the school prior to any talk of a $10,000,000 loan on top of that.  Taking on another ~$45,000 in debt per student ??   And the financing cost on that ??

And I'm not on the banks at all, it's the admin of the school.  What planet are they from ??   How could this have worked ??

I couldn't say on the rest of the business plan, but on this, you need to amortize (that's probably the wrong word) the cost of the loan over a far greater period than you're apparently doing here. The utility of the land doesn't disappear when current freshmen graduate.

[vorlon13]

231 students every year servicing the debt on $10,000,000 on top of supporting 61 staff ??

How many students could service the debt on a $45,000 car loan on top of tuition? Or a $45,000 mortgage? Or Visa card, or having to service $45,000 in student loans, while still being a student??

Business plan doesn't work, BTW, even before $10,000,000 loan was thought of, let alone after. How could such a tiny college/university be viable with a staff of 61 unless 60 were prison work release making 50 cents an hour ?

I'm running a farm, I know what kind of cash flow I need to self finance next years seed/fertilizer/chemical inputs and support 6 adults. Harnessing 231 students to provide for income/food/shelter/insurance for 61 employees is quite a feat.

[Whateverist]

Great news in a way. If we go into the next presidential election cycle without either Hillary or Bernie as viable options maybe we can find a option free of baggage.

[vorlon13]

Mayor of New Orleans is how far down the list you have to go to achieve that.

Still interested ?

[Whateverist]

Ahhhh .. I'll have to get back to you.

[Jackalope]

231 students every year servicing the debt on $10,000,000 on top of supporting 61 staff ??

I don't know, vorlon. What are the terms of the loan? A 10M 30 year loan at 3.25% results in a cost of ~200 per student, per month (assuming 221 students). What was the tuition again? Any subsidies?

Related to overall operating costs (hello, payroll), that loan is going to be a small part of the overall expense. I have no idea if their business plan works or not, having not looked at it, but if this is a private institution with endowments, and high tuition, I don't see that in and of itself being a huge issue.

How many students could service the debt on a $45,000 car loan on top of tuition?

Surely you recognize the difference between say a 5 year car loan and a real estate loan term that spans decades. Surely you also recognize that no individual student is going to be responsible for $45K in debt. You're comparing apples to oranges here.

[A Theist]

Mayor of New Orleans is how far down the list you have to go to achieve that.

Still interested ?

The dems will have to choose a candidate who's much more moderate than Hillary or Bernie. Somebody like Senator Joe Manchin of West Virginia.

[vorlon13]

231 students every year servicing the debt on $10,000,000 on top of supporting 61 staff ??

I don't know, vorlon.   What are the terms of the loan?  A 10M 30 year loan at 3.25% results in a cost of ~200 per student, per month (assuming 221 students).  What was the tuition again?  Any subsidies?

Related to overall operating costs (hello, payroll), that loan is going to be a small part of the overall expense.  I have no idea if their business plan works or not, having not looked at it, but if this is a private institution with endowments, and high tuition, I don't see that in and of itself being a huge issue.

How many students could service the debt on a $45,000 car loan on top of tuition?

Surely you recognize the difference between say a 5 year car loan and a real estate loan term that spans decades.  Surely you also recognize that no individual student is going to be responsible for $45K in debt.  You're comparing apples to oranges here.

Terms of $10,000,000 loan irrelevant as school wasn't financially viable before loan was even under consideration.

Unless students are required to sell their kidneys in Saudi Arabia . . . 


And with school apparently not financially viable before loan even considered, terms of loan would be highly unfavorable, worse than Broadway Payday Lender.

School did fail, and to me at least, not much of a surprise there.  Lending officer would have offered (or had a fiduciary responsibility to their employer to offer) a loan with interest rate commensurate with risk.  And this would have been an extraordinarily high risk loan.

I recall when Dana went under a few years ago, supposedly for an accreditation/debt issue, but when it was revealed they had ~ 600 students, it was pretty obvious (or should have been) that school was simply way too small to be viable today.  Overhead alone was killing them. Millions in debt, the accreditation issue was a coup de grace.