Burlington College Closing Due To "Crushing Debt" Incurred Under Presidency Of Bernie Sanders' Wife

Tyler Durden's picture

In what may or may not be a harbinger of things to come should Bernie Sanders become president, earlier today Burlington College, a small Vermont private school once led by the wife of Democratic presidential candidate Bernie Sanders, said Monday it will close later this month, citing "the crushing weight" of debt incurred during the presidency of Jane Sanders who was in charge of the college until 2011.

According to WaPo, the college which enrolled 224 students as of fall 2014, said it faced financial troubles connected to its 2010 purchase of 32 acres of lakefront property from the Archdiocese of Burlington, according to the Burlington Free Press. The college said it had sold property to reduce its debt to a manageable level, but it was placed on probation in 2014 by its accrediting agency and it faced cash flow problems due to the imminent loss of a line of credit.

The reason for the small liberal school's terminal financial trouble is that to fund the property purchase from the Catholic diocese, Sanders took out $10 million in loans.  As HeatStreet reported last month, the college almost immediately fell short on its financial obligations as fundraising pledges and commitments Ms. Sanders cited in the loan agreements never materialized. Less than a year after leading Burlington College into massive debt, Ms. Sanders resigned, taking with her a $200,000 severance package. By 2014, because of its shaky finances and running deficits, Burlington College found itself placed on probation for two years by the regional accreditation agency.

Jane Sanders was president of the college from 2004 to 2011. Her husband, Bernie Sanders (I-Vt.), a former mayor of Burlington, served in the U.S. House of Representatives from 1991 to 2007 and since then has represented Vermont in the U.S. Senate. He is now competing with Hillary Clinton for the Democratic presidential nomination.

Jane Sanders stepped down in 2011 amid a dispute with the college’s board. After her husband launched his presidential campaign, news stories emerged that scrutinized her role in a loan application for the lakefront ­real-estate purchase. Jane Sanders has dismissed those stories as politically motivated and said the issue was not a factor in her departure from the college.

A Burlington College news release issued this morning called these financial hurdles insurmountable at this time. "We anticipate notice from [the regional accreditation agency] that we have not met the Commission’s financial standard," the news release said, "and, therefore, our accreditation will be lifted as of January 2017, and the College will not be able to award academic credit after this time."

The school’s website describes the college as “a small, creative, private liberal arts institution located in Burlington, Vermont on the shore of Lake Champlain. The College has been recognized as having the most free-spirited students in one of the healthiest states in the country."

The college started in 1972, according to its website, "as a tiny, close-knit group of students meeting in the living room of our founder, Dr. Steward LaCasce. Dr. LaCasce’s approach to learning attracted a non-mainstream college population — returning Vietnam War veterans, single parents with dependent children, and others seeking alternative higher education opportunities. "Known then as the Vermont Institute of Community Involvement, the school was dedicated to integrating learning, personal development, and engagement in the community into a comprehensive educational experience."

The college ended overindebted and in financial ruin, similiar to the fate of a Latin American failed "socialist paradise", currently in the news on a daily basis.

Where things could get tricky for Bernis is that as HeatStreet adds, Catholic parishioners in Vermont have called for an investigation into whether Ms. Sanders committed federal bank fraud by deliberately misrepresenting the amount that the college had secured in fundraising pledges as she sought financing for the land purchase.

As Ms. Sanders pursued financing for the land acquisition, she repeatedly said that Burlington College had received more than $2 million in fundraising commitments and pledges, according to numerous records. But in fiscal year 2011, Burlington College raised only $279,000,—though the college had earlier claimed to have secured $1.2 million in confirmed pledges.

In January, Vermont lawyer Brady Toensing, who is also vice chair of the Vermont Republican Party, wrote a letter on behalf of Catholic parishioners to the U.S. attorney in Vermont, as well as the inspector general of the Federal Deposit Insurance Corporation, seeking a probe into whether Ms. Sanders fraudulently secured the loans.

The U.S. attorney, Eric Miller, confirmed that he had received the parishioners’ letter but could not comment on the status of any investigation.

Below is the full text of the closure announcement, as reported by the Chronicle of Higher Education:

In recent years, Burlington College has struggled under the crushing weight of the debt incurred by the purchase of the Archdiocese property on North Avenue. Through sales of property, the College has worked to reduce this debt to a manageable level.

 

In April, the College’s lender informed the College it would not renew the College’s line of credit. The College relies on its line of credit to shoulder the cyclical nature of cash flow between semesters.

 

Since July 2014, The College has been on probation with its accrediting agency, The New England Association of Schools and Colleges (NEASC) due to not meeting its financial resources standard. The Federal Department of Education allows a college only two years of probation. Hence, we anticipate notice from NEASC that we have not met the Commission’s financial standard, and, therefore, our accreditation will be lifted as of January 2017, and the College will not be able to award academic credit after this time.

 

These hurdles are insurmountable at this time.

 

On May 13, 2016, the Burlington College Board of Trustees decided to close the College’s programs effective May 27, 2016.

 

The higher education community has extended their support to the College and all of our current students will be able to continue their education at a neighboring college and graduate as scheduled. Newly deposited students for fall 2016 will also be welcomed by colleges within Vermont, of their choosing.

 

It is with a great sense of loss to the educational community that Burlington College’s progressive and unique educational model will no longer be available to students.

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Kirk2NCC1701's picture

Q: to whom was that property sold at a discount?

Not to some Tribesman or other insider Opportunist, I hope.

RAT005's picture

You can't make this stuff up.....or is it an Onion story?

knukles's picture

When you run out of other people's money
So, it really wasn't an institution of Higher Education, self-described as; a tiny, close-knit group of students meeting in the living room of our founder, Dr. Steward LaCasce. Dr. LaCasce’s approach to learning attracted a non-mainstream college population — returning Vietnam War veterans, single parents with dependent children, and others seeking alternative higher education opportunities. .... Known then as the Vermont Institute of Community Involvement, the school was dedicated to integrating learning, personal development, and engagement in the community into a comprehensive educational experience.

Progressive Mantra:  There's Always Money in the Banana Stand!

RAT005's picture

For me the story is a disgraced executive resigning with a $200k severance package. 

Future Jim's picture

The miracle of socialism ...

ACP's picture

Bernie's sow obviously thought the students were like taxpayers - pay up under gunpoint.

JamesBond's picture

...something about running out of other people's money...

 

jb

jbvtme's picture

silly me...i thought that fat goyim wench was his hospice care giver.

NoDebt's picture

If only she had an organization like the IRS that could have FORCED the donors to pay more, all would have been well.

TeamDepends's picture

You Berniebots and Hillarynutz could really learn something from this story. But you won't.

COSMOS's picture

Anyways drum roll please.....' And the reason it failed said Mrs Sanders was because she tried to do GOOD and DID NOT RAISE THE TUITION RATES'  That is the official story for the goyz.

Did her severance package include a few of those acres right on the lake for a retirement house?

yovatti's picture
yovatti (not verified) ACP May 16, 2016 10:21 PM

I wonder how often Bernie puts the ol' socialist meat to that tub of lard?

 

mayhem_korner's picture

 

 

A thousand thanks for that image.  Oy.

eurogold's picture

Poor Bernie, I'm puking already at the thought !!!!

eurogold's picture

Imagine that as the U.S. "First Lady"!

( reflects/ represents  the "body positive" BS, of american women in general )

Keyser's picture

Gee, who would have guessed that the wife of the socialist candidate for POTUS would kill the organization she was hired to run with crushing debt... Harbinger of things to come? Too late, that horse has already bolted from the barn... 

DuckArmy's picture

wow.  the idicoraties are out in force tonight.  lets see.  she did a common strategy done by other universities.  capitalism has left the country so there are no jobs.   the capitalist economy is crashing again, and again, and again.  how is that SOCIALIST AGAIN?  duh!!!!!

ZD1's picture

 

 

Wrong.

Bad granny Sanders did a Venezuela--the college ended over-indebted and in financial ruin, similar to the fate of the Latin American failed "socialist paradise."

mayhem_korner's picture

 

 

The notion that Burlington College is anything remotely resembling a university is laughable.  Apparently you don't know much about the Sanders. 

They (she) was once so delinquent on her utility bills that the Vermont Department of Public Service had to be notified to prepare for the fallout of shutting off their service in mid-winter.  She didn't pay until the service truck showed up, and was more than 90 days delinquent.

COSMOS's picture

Well there you go, if Bernie becomes president that would never happend cause the Utility would be SOCIALIZED lol.

DuckArmy's picture

wow.  the idicoraties are out in force tonight.  lets see.  she did a common strategy done by other universities.  capitalism has left the country so there are no jobs.   the capitalist economy is crashing again, and again, and again.  how is that SOCIALIST AGAIN?  duh!!!!!

JamesBond's picture

Reposting the absurd only adds to the absurdity.

o r c k's picture

It doesn't sound like a safe space at all. TRIGGERED.

fajensen's picture

She just did what the McKinseys Do: Load up the business with debt, strip the assets, sell the carcass back to suckers in "the market".

Hillary is learning the craft of titty-oogeling from her husband (or maybe she is a closet lesbian and Bill is covering for her): 

http://www.dailymail.co.uk/news/article-3593626/Calling-celebs-Clinton-f...  

TeamDepends's picture

"Lots to think about". Hilarious! And yes, Hildabeast prefers bearded clam out of necessity.

SafelyGraze's picture

NEW YORK, Mar 10, 2010 -- Moody's Investors Service has withdrawn the Ba2 bond rating with a stable outlook on High Point University's Series 2001 Bonds due to the bonds being fully defeased. At this time, the University no longer maintains any outstanding debt with a Moody's rating based on the University's credit quality.

http://www.municipalbonds.com/bonds/moodys_report/1485/


Theosebes Goodfellow's picture

Serves them right and good riddance. If you liberals are stupid enough to put an uber marxist in charge you deserve all the ruin you reap. What part of her being married to a professional leech who never held a job until he was almost 40 did you missed, fools? Don't they know the word "slacker" in Vermont? The real blessing in this is that the college will no longer be ejaculating out brain-dead idiots every year with worthless liberal art degrees. Halle-fukin'-yuyah!

Normalcy Bias's picture

....b..b..but everything should be FREE! Just ask these geniuses...

Keyser's picture

You do know that you are talking about roughly 50% of Americans, right?  We have passed the tipping point, the point of no return on turning the US into a welfare state... When a runaway train is heading your way, the only logical action is to get out of the way... Prepare accordingly... 

Donald J. Trump's picture

The problem is she was trying to be a joo but she was born and raised catholic.  She fucked up the money part.  Now if a real joo was in charge that school would have had a aaa rating, 100x more debt, a multi million $ severance, and still somehow make a shit load of money.

daveO's picture

Membership has it's privileges. Why do I have the sneaking suspicion that she left with more than $200K? 

COSMOS's picture

Nah Trump, things would be the same, its just the MEDIA that would tell you what you said.

VladLenin's picture

Yes... it berns when I pee.

daveO's picture

The Clinton Crime Foundation in action? 

garlansm's picture

Yes and its called crotch rot!

The Saint's picture
The Saint (not verified) Kirk2NCC1701 May 16, 2016 7:04 PM

LOL.  This is the most hilarious story of the day.  The socialist's wife runs the college into the ground with debt.  Does it get any more ironic than that?

And the $200,000 severence package from a college with a total of 224 students.  ROFLMAO

How big is the faculty?  Maybe 100 "progressive" professors?  :-)

WillyGroper's picture

Just $79K shy of the pledges...imagine that.

D Nyle's picture

Just put her in charge of all the liberal colleges. Peter Principle

Welfare Tycoon's picture

All the liberal colleges? 

Might as well just have said all colleges.  

Theonewhoknows's picture
Theonewhoknows (not verified) south40_dreams May 16, 2016 6:56 PM

and while she tried to be socialist she will be accused of bank fraud - there you have a small portion of what FEELING THE BERN will be if he would be president (or Hillary, you never know with socialists those days). I guess Trump '16. 

BandGap's picture

She's so big she has her own area code. Crushing, this I understand.

Amalgamated Tang's picture

Burlington College: If it has anything to do with Federal handouts, corrupt unions, and loans to naive students, we do it and we do more of it than anyone else in the world.

Glass Seagull's picture

 

 

Let someone else pay the tab