ASU Enters Federal Program to Reduce Indebtedness
Alabama State University President Quinton T. Ross, Jr., signed an agreement on Monday (March 5) that refinances more than $137 million of the University’s existing debt from variable rates as high as 5.4 percent to a fixed rate of 2.9 percent.
Ross met with officials of the United States Department of Education in Washington, D.C., to finalize the agreement which allows ASU to refinance part of its indebtedness through the department’s Historically Black College and University (HBCU) Capital Financing Program.
According to the financing program’s website, the loan program was established “to provide federal assistance to facilitate low-cost capital basis for Historically Black Colleges and Universities, which enables such colleges and universities to continue and expand their educational mission and enhance their significant role in American higher education.”
Ross said the agreement is a part of his administration’s and the Board of Trustees’ overall efforts to ensure the financial stability of the University.
“This is a significant step in the right direction for Alabama State University,” Ross said. “Being able to refinance a large portion of our bond indebtedness allows us to save millions of dollars by gaining lower interest rates.”
ASU’s interim vice president for Business and Finance, William Hopper, said the University was able to refinance multiple bond issues through the financing program.
“We were able to carve out the portions of our current bond issues that were financed at the highest interest rates and refinance them at lower rates,” said Hopper. “This demonstrates that the current leadership of the University is taking advantage of opportunities to enhance the institution’s financial operations and increase our stability long term.”