“Jane Sanders was forced out in 2011…and even in spite of evidence that she lied while securing loans, the university reportedly offered Sanders a $200,000 severance package.”
Bernie Sanders rose to the forefront of American politics during the 2016 presidential race, and for good reason—his message resonated with many Americans. Now, his wife, Jane Sanders, is finding herself in the spotlight as well, but for all the wrong reasons.
Jane Sanders has hired lawyers in response to a federal probe into her decision to take out a multi-million-dollar loan, leaving students who have invested tens of thousands of dollars into degrees that have questionable value. Some are alleging that Bernie himself pressured at least one bank into making a loan, though evidence of the senator’s involvement has been scant so far.
So what happened? Back in 2010, Burlington College—a small, private not-for-profit school—purchased 32 acres of land for $11 million dollars along Lake Champlain. The deal was driven by Jane Sanders, then-president of the university. The picturesque land (beach included!) would provide the once-roving school with a permanent campus. Started in the ‘70s, Burlington College had built a reputation for offering unique degrees (e.g., woodworking) but had only leased temporary and often not ideal space.
Sanders had an ambitious vision for Burlington College and planned to grow its enrollment, offer graduate degrees, and increase its academic profile. She was also seemingly very confident that she could secure donations for the school. In fact, as she applied for the $10 million dollar loan to purchase the land, she cited millions of dollars of committed donations.
A Republican lawyer, Brady Toensing, is claiming that Senator Sanders pressured banks into loaning money. So far, Toensing’s claims seem unsubstantiated. Regardless, federal authorities are looking into the claims.
Problem is, those donations apparently didn’t exist, or at least were greatly overstated. Jane cited roughly $1.2 million in “confirmed” donations for the first year. However, Burlington College was able to secure less than $300,000 in donations. When bills for the loan came due, Burlington College found itself in a tough, tough place.
Donations never materialized, and tuition, fees, and other revenues weren’t near enough to cover the bills. Instructors and professors were forced to take pay and benefit cuts, and tuition and fees rose, but the university’s finances were beyond salvageable. Desperate efforts to draw in students from China and new students into graduate programs failed to bear fruit.
The university fell into crisis, and Jane Sanders was forced out in 2011. Interestingly, even after sinking the university deep into debt after its failed campus expansion, and even in spite of evidence that she lied while securing loans, the university reportedly offered Sanders a $200,000-dollar severance package.
For a senator who frequently (and rightly) railed against golden parachutes in the corporate sector, it seems hypocritical that his wife would take a $200,000 severance package after she ran a university into the ground. Perhaps the senator and his wife should do as he says, no?
On a side note, the value of Burlington College’s degrees even before it went defunct was very questionable. According to Politico, only one-third of the college’s students ended up earning more than your average high school graduate (yes, high school, not college). Meanwhile, scholarships, tuition and fees weighed in at about $25K—substantially more than any public in-state university.
Encouraging college education is fine, but driving students into debt or asking parents to shell out huge sums for a potentially low-quality degree raises some serious questions.
