ST. CLAIRSVILLE, Ohio - Ohio University students will begin paying off the debt on a new student information system with a $24 fee starting Fall Quarter 2009.
The Board of Trustees unanimously approved a resolution that allows OU to issue a bond of up to $32 million at its meeting Friday. OU will spend an estimated $40 million repaying the debt over 10 years at an interest rate of 5 percent.
The money borrowed will help cover the costs of a $41.4 million technology improvement project, which includes a new student information system - budgeted at about $29.9 million - new equipment, cables and facility upgrades. Paying for the changes also will require a second bond of $5.9 million to be issued in 2012.
The student information system is a software and hardware system that allows the university to manage student records. The new system, which will be in place by 2012, will allow students to pay bills, schedule for classes and access Blackboard from one screen, among other things. The current system is more than 15 years old and will lose vendor support in about a year and a half.
Students will pay 50 percent of the debt through a $24 technology fee beginning Fall Quarter 2009. This fee will be raised to $33 per quarter when the second bond is issued. Reallocated general fund money will cover the other half.
Before the vote, Trustee Larry L. Schey called the new system critical to the mission of the university.
If we do not do this
within a year's time we would not be able to operate the university he said.
Although OU will be paying off the debt for up to 10 years from the date of issuance, some of the hardware will last only 4 to 5 years, Chief Information Officer Brice Bible said.
By the time we need to replace it we'll have a replacement system in place
he said. Bible also said the university would work with other Ohio schools on cost-sharing and other measures to prevent the need to issue new debt.
The student information system is expected to last 10 to 15 years after completion in 2012, Bible said.
Board Chairman C. Daniel DeLawder recognized the risk of purposefully going into debt given the shaky economy, but said OU has little other choice.
It is unquestionably the right thing to do
he said.
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