(Jen Chung) Yesterday was a big day for NYU, as it announced that its president John Sexton would leave the school in 2016—and that it will cease its practice of loaning millions to faculty for their second homes.

NYU Local reports, "In a university-wide email [yesterday], the Board of Trustees acknowledged for the first time that John Sexton would not continue serving as President after 2016. The Board will begin a search for a new president within the next three years, and is committed to including student and faculty representation in the process." The Board's email said, "John Sexton’s agreement with the University to serve as President extends to 2016, and he has made clear that he will not serve beyond that."

Sexton, who makes $1.5 million a year, has ushered in huge growth for the university, prompting criticism from West Village neighbors and ire from faculty and workers, who have voted no-confidence in Sexton numerous times.

The Board also said it would stop offering loans for faculty's second homes, a practice that had extended to Sexton himself (he got a $1 million loan for his Fire Island getaway) and other highly-placed administrators and professors. However, the school will still offer loans for primary residences, with Board chairman Martin Lipton explaining, "This is a matter of extreme importance to us. No university can prosper if there’s disruption, if there’s unhappiness in the family."

Read More: Gothamist

Photo Credit: Getty Images/Jemal Countess