Posted on 07/14/2006 8:29:25 AM PDT by NormsRevenge
SAN FRANCISCO — The University of California has awarded $702 million in low-interest home loans to executives, faculty and staffers, including some to employees who did not qualify under university policy.
There are nearly 2,000 active university-issued loans, most carrying interest rates of 3% to 4%, but some with much lower rates, the San Francisco Chronicle reported Thursday.
Officials with the 10-campus system refused to reveal who received the money, citing employee confidentiality. But they released some details, including an unidentified UC Berkeley professor who was given a $250,000 home loan with an interest rate of 0.5% a year. An unidentified UCLA professor received loans worth up to $1.5 million.
Dozens of loans were awarded as "exceptions to policy" to unidentified aides and other employees who wouldn't normally qualify, UC officials said. The perk is usually reserved for professors and top executives.
The loans are not offered at the state's other public university system, California State University. UC officials have defended the practice, saying the interest and fees recouped from the loans generally equal the amount earned on other short-term investments.
(Excerpt) Read more at latimes.com ...
Yes, but the money is a long-term investment and therefore should be earning long-term returns. Not exactly proper stewardship, is it? Further, are the recipients reporting the discount as income on their tax returns? Hmmm, are the qui tam provisions in play on this one? There is gold in them thar FOIA requests!
INTEREST RATE CUT FOR THE RICH!!!!!!!!!
Believe it or not...UCLA does have to offer these subsidies in order to compete
in the bidding war for top-flight academic talent.
Despite the traffic, you'd think that folks would just be happy to teach in
sunny Southern California than in winter-gloomy Boston (for example).
Just shows you how geeky academics think...like capitalists no matter how
liberal they are.
Yup. Here we go again: Do as I say, not as I do.
Reminds me of all of the money-grabbing during the construction of the so-called "Big Dig" in Boston.
Wow, my wife teaches high school....think we can get a low interest note? (please don't laugh too loud, you might wake up a student or something!)
Maybe Marin County should offer similar subsidies for hangars at Gnoss Field for low income aircraft owners.
/sarcasm off
The price of real estate what it is in California, teachers need help in obtaining affordable housing and financing.
Just another form of affirmative action, aka discrimination.
It seems that if someone is getting a loan for which they are not qualified, that is prosecutable as a felony for fraud.
Subsidized housing for some means the rest of us get squeezed out - basic Economics. Basic Marxism.
But I feel your pain.
Here in Montgomery Country Maryland they had a program for police or teachers to buy a property with only $100 bucks downpayment and no closing costs which are typically 3.5 to 4.5 percent of the purchase price.
Also, they allowed the police to keep their cruisers at home...with the idea it served as a detriment to criminal activity and gave a sense of peace and safety to the neighborhood.
We have a friend whose brother is a world renown surgeon. Several years ago UCLA offered him a big salary and a low interest rate loan to buy a home in the Bel Air section of LA. He also was offered a large sum to do research. He turned it down because he did not want to move to CA.
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