Michigan State settlement/Nassar

[sassenach]

https://www.cnn.com/2018/05/16/us/larry-nassar-michigan-state-settlement/index.html

Nothing will ever be enough, but I'm glad it's a number that has some teeth.

[Pawz4me]

332 victims

That's a staggering, mind boggling number.

[sassenach]

5 hours ago, texasmom33 said:

And what’s crazy is you know there have to be more from before he was at MS, because I doubt he just started doing it there, and then I’m sure also others who were too ashamed to come forward. And he’s just ONE sick pervert out of so many more.

 

 

75 million of that settlement is being put into an account for yet unidentified victims. Everyone knows there's more coming. Breaks my heart.

[umsami]

Good.  It's not enough, but hopefully it's enough that nobody will protect abusers like this again.

 

As a former Michigan resident, I have to wonder what that will do to tuition costs.  Michigan State was the more affordable of the two good Michigan state schools.  Where is the money coming from? The endowment? 

Honestly, I think they should also include free college tuition for the victims, through graduate school/PhD/DO/DVM at MSU.  Gymnastics is not a high paying career.  Those girls and young women gave everything to pursue that, and getting a debt-free degree would help. 

[TechWife]

7 hours ago, umsami said:

As a former Michigan resident, I have to wonder what that will do to tuition costs.  Michigan State was the more affordable of the two good Michigan state schools.  Where is the money coming from? The endowment?

Apparently, they have the money on hand and expect their insurance companies to reimburse them.

"MSU is expected to pay the $500 million out of pocket and then will likely sue its insurance company to get the money back, according to a source with knowledge of the settlement. MSU's interim President John Engler sent a letter to the MSU community Thursday saying that the university's insurance carriers participated in the mediation and "we expect all of them to fulfill their contractual obligations."

https://www.cnn.com/2018/05/16/us/larry-nassar-michigan-state-settlement/index.html

 

I imagine their insurance companies will try not to reimburse them, perhaps they have negligence clauses that will help them get out of their obligation, I don't know.

 

Another theory is here, which is a bit more complicated than the notice that went out from MSU:

"The money will have to come from some combination of insurance, state funding and student tuition revenue, said Thomas L. Harnisch, director of state relations and policy analysis for the American Association of State Colleges and Universities. 'They’ll likely have to use reserve funds and borrow money,' Harnisch said.

State funding covers about $280 million a year of the school’s overall budget of about $1.4 billion, according to Robert Kelchen, assistant professor of higher education at Seton Hall University, who also speculated Michigan State will need to take out loans to cover the settlement, as state lawmakers will likely balk at permitting public funds to be used, and the state limits how much colleges can raise tuition. Michigan State also could draw from its endowment, although much of that money is typically restricted."

https://www.washingtonpost.com/sports/settlement-with-larry-nassar-victims-will-have-impact-on-michigan-state/2018/05/16/1f6eb076-5935-11e8-b656-a5f8c2a9295d_story.html?utm_term=.20b4d0cc81f0