Philadelphia, Pennsylvania (CNN) When the university paid its own bills for two years, it took a gamble that it would be better off for the rest of its students than for taxpayers.
The university had borrowed money from the city of Philadelphia, and it had paid off the city’s mortgage.
But when the university announced it would pay its own $300,000 monthly rent for a two-year period, the city was outraged.
It asked that the university repay the debt to taxpayers.
That prompted the university to take a different approach, to pay for itself instead.
Instead of going through the university’s regular payment process, the university would have used a credit line, the name for a payment from a bank that was more common at the time.
The credit line would be used to pay the $300 million bill, the school said in a statement.
The move saved the university from going bankrupt.
And it gave it the chance to take more risks with the building that houses its offices and labs.
The school said the move was a result of an increase in the amount of credit available for campus loans from banks, which are increasingly used to help schools pay their own bills.
The new arrangement also saved the city money, since the university was already borrowing money for its own building, said David L. Baughman, the director of finance and program management at the city.
Baughman said the city should have paid for the university with its own money, rather than with a loan from a government agency.
The city, which has long complained about how its tax dollars are being spent, welcomed the university move.
The city, with more than $5 billion in annual revenue, was already using more of its credit line than it needed, he said.
Bougart said the new arrangement allowed the city to borrow even more money and help pay down its debt.
But the city would have to repay that debt over time, and then find a new way to use that money, he added.
The mayor’s office said in an email that it was grateful to the university for its work and appreciated its efforts in reducing its financial burden.
“The city will continue to work with our creditors and will take every measure necessary to reduce its debt, including refinancing,” the mayor’s press secretary, Amy O’Connell, said in the email.