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Northam announces refinancing plan for Virginia’s public colleges and universities

23 September 2020 State News Covid19 News


Gov. Northam on Tuesday announced a higher education refinancing plan that the administration says will save Virginia’s public colleges and universities more than $300 million over the next two years.

The state will take advantage of low interest rates by refinancing bonds issued by the Treasury Board of Virginia (TBV) and the Virginia College Building Authority (VCBA).

According to a news release, many Virginia colleges and universities have seen a decline in revenue traditionally used for bond payments. Under Northam’s plan, institutions will make no principal payments on their VCBA bonds through fiscal year 2023. The proposed restructuring would also extend institutions’ payment plans for two years beyond their current schedule, for both VCBA and TBV bonds.

As part of the plan, Northam will work with the General Assembly to allow additional flexibility for higher education refinancing during the 2021 General Assembly session.

Among the 16 institutions expected to benefit from Northam’s plan, James Madison University is expected to save $43.7 million, Virginia Community College System is expected to save $9.7 million and George Mason University is  expected to save $58.3 million.

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