Ivy League’s Penn takes out a $300 million loan amid higher-ed borrowing spree

The borrowing spree for elite U.S. universities shows no signs of slowing down.

The trustees of the University of Pennsylvania entered into a $300 million loan this month, according to a Thursday regulatory filing that doesn’t identify the lender. The agreement allows the school to use the proceeds for general corporate purposes.

The Ivy League school, which also secured lines of credit totaling $500 million in June, had about $175 million in federal funds frozen by President Donald Trump’s administration in March in a clash over policies that allowed transgender athletes to compete in women’s sports. The administration subsequently reached a deal with Penn after the school agreed to limit the participation of transgender athletes in sports.

A spokesperson for Penn, which is President Trump’s alma mater, said the loan wasn’t prompted by federal funding concerns, but is part of a broader financial strategy to help make sure it has access to the liquidity it needs.

This year has seen a surge in borrowing by prestigious American universities that have been criticized by the Trump administration or are facing potential cuts to federal research funding. Top-tier schools have sold taxable bonds, taken out private loans and increased capacity for commercial paper — moves that account for at least $6.5 billion since March, according to data compiled by Bloomberg.

Stanford University sold $500 million of taxable bonds this month, and the University of Chicago is considering selling tax-exempt debt. Brown University entered into a $500 million loan in July. Harvard University and the Massachusetts Institute of Technology have also sold bonds this year.

Some schools have turned to budget cuts amid the funding pressures. Departments at Princeton University will soon roll out measures such as “less free food and merchandise” and reduced hours at certain campus operations, the school said Thursday.