June 18, 2013
HIGHER EDUCATION BUBBLE UPDATE: N.Y.U. Gives Its Stars Loans for Summer Homes.
Its most interesting feature, however, is not architectural, but financial. The house, which is owned by John Sexton, the president of New York University, was bought with a $600,000 loan from an N.Y.U. foundation that eventually grew to be $1 million, according to Suffolk County land records. 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.
If nonprofits were regulated like for-profits, this might get more scrutiny.