FAIRFAX, Va. -- Governor Ralph Northam announced a new higher education refinancing plan Tuesday that he says will save Virginia’s public colleges and universities more than $300 million over the next two years.
“The COVID-19 pandemic continues to have tremendous impacts on higher education, including the fiscal health of our colleges and universities,” said Governor Northam during an announcement at George Mason University.
“Families all over the country are taking advantage of record low interest rates to refinance their home mortgages, and we want our public institutions to benefit as well," he added.
The Commonwealth will refinance bonds issued by the Treasury Board of Virginia and the Virginia College Building Authority, which institutions of higher education use for capital projects.
Northam says refinancing will free up millions of dollars in savings that will allow colleges and universities to "make critical investments, meet the needs of Virginia students, and continue offering a world-class education.”
Virginia Commonwealth University is expected to save more than $23 million, while Virginia State University is expected to save nearly $13 million.
The following savings are expected:
- Christopher Newport University: $14.4 million
- George Mason University: $58.3 million
- James Madison University: $43.7 million
- Longwood University: $8.2 million
- Norfolk State University: $8.2 million
- Old Dominion University: $29.8 million
- Radford University: $5.1 million
- Richard Bland College of William & Mary: $320,000
- University of Mary Washington: $9.3 million
- University of Virginia: $344,000
- Virginia Commonwealth University: $23.1 million
- Virginia Community College System: $9.7 million
- Virginia Military Institute: $2.8 million
- Virginia Polytechnic Institute and State University: $40.1 million
- Virginia State University: $12.8 million
- William & Mary: $33.7 million
As part of his plan, Northam will work with the General Assembly to allow additional flexibility for higher education refinancing during the 2021 General Assembly session.