BLOOMINGTON — Trustees at Indiana University have allowed school leaders to borrow up to $1 billion to counter a potential budget shortfall due to the coronavirus pandemic.

The trustees approved the request Friday

University spokesman Chuck Carney said that the university is in good fiscal shape, but the request offers peace of mind for the university to continue operations during difficult times.

“It allows us to borrow money as needed to maintain things on our campuses in the case of a shortfall that might come up,” Carney told The Herald-Times.

The university's largest source of revenue is tuition. The school remains in operation during the pandemic, but has stopped in-person classes for the spring and summer.

The university has also closed on-campus housing, offering students who have already paid a pro-rated refund. Only students with extraordinary circumstances can stay.