Brown has secured a $500 million loan amid federal cuts to research and financial aid in recent months, marking at least the second major loan the University has taken out in the span of four months.
The University originally struck a deal for a $300 million loan in April after the Trump administration announced it would freeze $510 million in federal funding to the University.
The loans supplement a number of additional cost-cutting measures by the University, including a staff hiring freeze and the elimination of salary increases for the President’s Cabinet. Earlier this summer, the University warned of additional financial measures that may include adjusting faculty hiring levels and modifying graduate student admissions.
The most recent loan, incurred on July 16, has a 4.44% interest rate and will mature in five years with the option to pay off the entirety of the loan before it reaches maturity, according to a regulatory filing reviewed by The Herald.
“Given recent volatility in capital markets and uncertainty related to evolving federal policy related to higher education, research and other important priorities of Brown, the University is fortunate to have a number of sources of liquidity,” University Spokesperson Brian Clark wrote in an email to The Herald.
He added that these sources include private and public debt markets and that they “are available to help Brown manage its finances and priorities.”
As of Friday, Brown is reportedly in talks with the White House to restore federal funding frozen by the Trump administration since this spring. When the freeze was first announced in April, White House officials pointed to alleged antisemitism on campus and diversity, equity and inclusion initiatives as justification for the freeze.
Before financial headwinds incurred from the Trump administration’s threats to higher education, Brown already faced a $46 million budget deficit. The University’s fiscal year 2026 budget — which was approved by the Corporation in May — projected that the deficit would decrease to $29 million.
Cate Latimer is a university news editor covering faculty, University Hall and higher education. She is from Portland, OR, and studies English and Urban Studies. In her free time, you can find her playing ultimate frisbee or rewatching episodes of Parks and Rec.
