May 25, 2007
Life-Insurance Deals May Be Costly for Colleges
Experts say high fees and financing structures may hurt returns for institutions that take out policies on alumni
In the past two months, nearly 100 colleges have started exploring a financial concept that seems almost too good to be true: collecting hundreds of millions of dollars for long-term capital needs by taking out life-insurance policies on wealthy alumni.
The idea started with Oklahoma State University, which said this spring that it had secured some $270-million for
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