Detroit schoolboard dissatisfied with interest rate on $150 million loan

Detroit school board members say they are considering turning down a $150 million loan from the state that is aimed at saving Detroit Public Schools.

That loan is part of the DPS rescue package recently signed into law by Gov. Snyder. We're told the reason the board may say no is because the loan comes with an 18 percent interest rate.

School board members discussed their plans at a news conference Monday morning.

They want to know what the state's prefered borrowing rate is, and how the financial turmoil got this bad in the first place under emergency management.

"Why are we allowing ppl who have destroyed black and brown education throughout the state to now come in and collect at a rate of 18 percent on our children's money," school board member Elena Herrada said at the meeting.

"I know you love our children just like we do, and I know you like justice; let that justice roll down like it had when we did the civil rights fight with Martin Luther King. Let justice roll down like it never has before," consultant Helen Moore said.

It's important to point out the school board members have little to no power while the school district is under emergency management. Emergency Manager Judge Steven Rhodes is out of town right now, so the school board has put together a list of questions and requests for when he gets back.

This is a developing story. Stay with FOX 2 for updates.