Trustees at Indiana University gave unanimous approval for the institution to borrow up to $1 billion in the next year for potential costs associated with the COVID-19 pandemic.
At a meeting Friday, the trustees discussed potential scenarios that would require the university to borrow, according to Chuck Carney, spokesman for Indiana.
For example, if the university has to delay the start of fall classes and doesn't receive tuition payments in the normal time frame, it could use the line of credit to cover revenue shortfalls from the delay.
"Basically, it was just done as a prudent measure against what may come in the future," Carney said.
The university has not yet borrowed any money. The possible scenarios could mean Indiana needs to borrow up to $600 million, he said, but the institution's good credit rating would let them get a line of credit for up to $1 billion.