Mary Washington Projected To Save $9.3M Under Refinancing Plan

FREDERICKSBURG, VA — The University of Mary Washington is expected to save about $9.3 million under a higher education refinancing plan announced Tuesday by Virginia Gov. Ralph Northam.

The refinancing plan will free up millions of dollars in savings for UMW and other colleges across the state to make investments and meet the needs of Virginia students. Many Virginia colleges and universities have seen a decline in revenue during the coronavirus crisis traditionally used for bond payments.

“The COVID-19 pandemic continues to have tremendous impacts on higher education, including the fiscal health of our colleges and universities,” Northam said Tuesday in a statement. “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."

Under the governor’s plan, institutions will make no principal payments on their Virginia College Building Authority bonds through fiscal year 2023. The proposed restructuring would also extend institutions’ payment plans for two years beyond their current schedule, for both Virginia College Building Authority and Treasury Board of Virginia bonds.

Northam's plan to allow additional flexibility for higher education refinancing will come up for consideration during the state's 2021 General Assembly session.

The governor was joined by George Mason University President Dr. Gregory Washington and state legislators for the announcement at the university’s Fairfax campus.

“Our public higher education institutions are critical to Virginia’s success, and we know they are hurting right now,” Senate Finance Committee Chairwoman Janet Howell said. “Allowing them to refinance some of their debt is an innovative way to save money when they need it most, and I look forward to supporting the legislative portion of this proposal next session.”

The higher education refinancing plan will save state's public colleges and universities more than $300 million over the next two years, according to the plan. These colleges and universities are expected to see savings from the plan:

• George Mason University: $58.3 million
• James Madison University: $43.7 million
• Virginia Tech: $40.1 million
• William & Mary: $33.7 million
• Old Dominion University: $29.8 million
• Virginia Commonwealth University: $23.1 million
• Christopher Newport University: $14.4 million
• Virginia State University: $12.8 million
• Virginia Community College System: $9.7 million
• University of Mary Washington: $9.3 million
• Longwood University: $8.2 million
• Norfolk State University: $8.2 million
• Radford University: $5.1 million
• Virginia Military Institute: $2.8 million
• University of Virginia: $344,000
• Richard Bland College of William & Mary: $320,000