Hey New York University students, have you ever wondered where your tuition money is going? Well, that $40,000 a year is helping professors and other assorted faculty afford some pretty sick summer homes. According to the New York Times, NYU—and other schools like Columbia and Stanford—are using that bread to help faculty out with home loans.
John Sexton, the university's president, bought a huge place on Fire Island with a $600,000 from an NYU that eventually grew to be valued at over $1 million:
It is one of a number of loans that N.Y.U. has made to executives and star professors for expensive vacation homes in areas like East Hampton, Fire Island and Litchfield County, Conn., in what educational experts call a bold new frontier for lavish university compensation.
....Universities in similar circumstances, like Columbia and Stanford, also have helped professors and executives with home loans. Aid for vacation properties, however, is all but unheard-of in higher education, several experts in university pay packages say.
“That’s getting to be a little too sexy even for me, and I have a good sense of humor about these things,” said Stephen Joel Trachtenberg, a former president of George Washington University who has publicly defended high salaries for professors and university executives. “That is entertaining, actually. I don’t think that’s prudent. I don’t mind paying someone a robust salary, but I think you have to be able to pass a red-face test.”
Richard Revesz, the dean of NYU's Law School, resides in a West Village town house that the school helped him purchase. He also has a place sitting on 65 acres in Litchfield County that was bought using a loan from NYU.
NYU American Association of University Professors chapter president Andrew Ross called it "quite offensive" that the university is taking tuition money and turning it into "extravagant compensation packages" for administrators and faculty. So, college is essentially about burying yourself in debt so your educators can stunt on you from an ivory tower. Encouraging, right?