NIU investments could garner better rates of return as a result of a policy change under consideration by the Board of Regents.

Under Regents Chancellor Roderick Groves’ proposal, Regency investment practices would allow investments in a wider range of financial areas.

NIU Controller Robert Albanese said the change will allow NIU to invest money in any area permitted by Illinois law.

Regency regulations currently restrict investments to government and high-grade corporate securities, said Regents Treasurer John Pembroke.

“We’re just bringing things up to speed,” Pembroke said. Some other universities have no restrictions on investments other than state law, Pembroke said.

The investments do not come from surplus money but from funds which are not immediately used by NIU when they are received, such as student fees, residence hall payments and funds for projects in NIU’s future, Albanese said.

NIU earns interest from the investments which is put back into the university and helps keep student fees and tuition down, Pembroke said.

Pembroke estimates NIU earns $1 million each year from investment interest. “Divide that by 23,000 students, and you can see the importance,” he said.

Albanese said the change would allow investments in commercial securities and banker’s acceptance notes. These types of investments generally earn greater rates of return, he added.

Commercial securities allow purchases of outstanding loans at a greater rate of return from other companies which in turn pay back NIU, Albanese said.

He said banker’s acceptance notes permit NIU to earn interest on purchase loans made by other companies against their assets.

Albanese estimates NIU’s portfolio at $36 million and said NIU invests money for periods as little as one week to maximize interest.

Groves submitted the change at last week’s Regents meeting and will vote on the issue at April’s meeting.