Report: Student Housing Financed With More Expensive Method

Sunday, June 3rd 2007, 7:12 pm

By: News On 6

OKLAHOMA CITY (AP) _ A newspaper Sunday is reporting that several Oklahoma colleges and universities chose more costly financing for student housing construction by using a process that bypassed competitive bidding and avoided the need for approval by state lawmakers and regents.

"The Oklahoman" reported that Oklahoma State University and other institutions used a method called no-recourse or off-balance-sheet financing to speed up the building process. But the process involves additional fees and can mean higher housing costs for students.

The newspaper reported that it couldn't calculate how much extra the financing method cost each school that used it.

One attorney suggested that the method could have saved money since construction costs go up over time.

The University of Oklahoma did not use the no-recourse financing method.