When your school protects a monster for decades, of course it's going to hurt your bottom line:
Moody's is weighing whether to downgrade the debt of Michigan State University because of the scandal involving disgraced USA Gymnastics team doctor Larry Nassar.
A rating downgrade could mean the school would have to pay more to borrow money.
Nassar was a member of the MSU faculty. He pleaded guilty to charges he sexually abused his patients and was sentenced last week to 175 years in prison.
Michigan State faces lawsuits by more than 100 women, alleging that the university allowed Nassar's abuse to persist despite victims' complaints. The suits are one of the major factors prompting the Moody's review. The school is seeking to have those lawsuits dismissed. Lou Anna Simon resigned as school president last week.
I love how no one focuses on how the victims have been impacted. Hundreds of women are victims of a serial molester and someone is worried that the interest rate on money borrowed by a land grant university is going to be too high?
Nassar was hired by Michigan State in 1986. He began molesting children in 1992. That's how long this has been going on. But, damn, let's fret over the costs of taking out a loan.
Michigan State has an endowment of $3 billion dollars, and so I really don't feel sorry for them. Start settling now because lawyers are in short supply, what with everyone who has ever met with Trump needing one right now.
Everyone knows Michigan State is going to pass the savings on to those who pay tuition. They're not touching their endowment. They're not going to do the right thing. They're going to increase tuition, cut services, and hire as many lawyers as they can.