School district loans are unreasonable burden on taxpayers

Jeffrey Gaunt and Emily Krone of the Daily Herald , outside Chicago, analyzed 206 suburban school district loans to show many taxpayers repay those loans at rates higher than they would on their homes. The investigation found that, despite federal measures that keep government rates low, the district agreed that taxpayers will pay back $6.03 billion for the $3.34 billion borrowed. "In the most costly example, taxpayers will repay $3.09 per dollar — or three times the amount borrowed." The Daily Herald analysis revealed that many districts agreed to interest rates higher than available, got cash bonuses from their lender for doing so and many agreed to pay compounded interest rates -sometimes on the higher rates. Also see the complete analysis and series