By just about every objective measure, the $88-million in debt that Wartburg College has carried since late 2005 poses a risk. The college's debt load--twice the amount that it takes in annually from tuition and other revenue--has raised red flags with its accreditor, alarmed some faculty members, and left Wartburg with a credit rating just one notch above "junk." It has also created some tensions with the citizens of Waverly, in northeastern Iowa, where the campus is located. College officials say that they are able to meet debt payments, and that even if investment losses do trip the covenant at the end of the fiscal year, in May, they don't expect repercussions, because the college's overall financial condition does not endanger the health of the bonds.