Chicago Public Schools Takes Out $275 Million Loan

CHICAGO (AP) — Chicago Public Schools has turned to JPMorgan Chase for a $275 million loan to keep operating through June and make a contribution to teacher pensions.

JP Morgan purchased “grant anticipation notes,” a short-term loan meant to be repaid with state education aid.

Chicago schools have plans to borrow close to $400 million. In addition to the JPMorgan loan, the school district officials say they plan to pursue another $112 million loan.

The district said the $275 million “creates sufficient cash” for CPS to meet its obligations to the Chicago Teachers’ Pension Fund.

Originally published by CBS Chicago.  Click here to read the entire article.