Brown University has entered into a new $500 million private loan agreement as it grapples with what officials describe as “deep financial challenges.” The Ivy League institution disclosed the deal in a securities filing on Friday, just months after taking out a separate $300 million loan in April.

The latest financing, a five-year loan at a 4.44% interest rate, will require monthly interest payments. The lender’s identity was not disclosed in the filing.

Brown is one of several U.S. universities turning to the capital markets in response to growing fiscal strain, particularly as the Trump administration intensifies scrutiny of higher education funding.

The administration has proposed sharp cuts to federal research grants and student aid programs while signaling potential revocation of tax exemptions and other financial privileges for elite universities. Some lawmakers have also floated the idea of taxing endowments at institutions deemed to be “ideologically biased.”

In that context, Brown’s borrowing move is seen as part of a broader defensive shift across the higher education sector. With endowments under political pressure and federal support in question, universities are increasingly relying on private financing to shore up operations, fund deferred maintenance, or prepare for policy-driven disruptions.

The university has not publicly detailed how the funds will be used, but analysts note that multi-hundred-million-dollar loans are typically earmarked for a combination of liquidity support, infrastructure investments, and financial restructuring.

Located in Providence, Rhode Island, Brown University is one of the eight Ivy League schools and ranks among the top private research institutions in the U.S. However, even top-ranked schools are not immune to tightening financial conditions, especially as political and economic factors converge to disrupt long-standing funding models.