The state of Illinois is broke (has the state passed a budget yet?), and the dysfunctional city of Chicago is a big reason why.
This is how unsustainable and plain insane Chicago is — the city’s public schools system will pay more in interest ($850 million) than the amount of the loan ($500 million).
According to an analysis by the Chicago Tribune, the loans carry interest rates of 7.25% to 7.65%. CPS will pay off the loans over 25 years, at roughly $35 million a year in interest.
That means that by the time the loans are paid off in 2042, the Chicago school district will have paid more than $850 million in interest on the original $500 million loans
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