Northam announces plans to refinance college bonds

Northam announces plans to refinance college bonds
FILE - In this June 4, 2020, file photo Virginia Gov. Ralph Northam speaks during a news conference in Richmond, Va. Virginia has rolled out a smartphone app to automatically notify people if they might have been exposed to the coronavirus. It's the first U.S. state to use new pandemic technology created by Apple and Google. The Covidwise app was available on the tech giants’ app stores Wednesday, Aug. 5, ahead of an expected announcement from Democratic Gov. Ralph Northam. (Source: AP Photo/Steve Helber, File)

RICHMOND, Va. (AP) - Virginia Gov. Ralph Northam is announcing a new plan to refinance debt related to construction on college campuses, a move he said will save public colleges $300 million over the next two years.

Northam made the announcement Tuesday at George Mason University, which the governor’s office said will save $58.3 million over the next two years.

The governor said the state will take advantage of low-interest rates by refinancing bonds issued by the Treasury Board of Virginia and the Virginia College Building Authority.

Northam said colleges would not have to make any principal payments on any VCBA bonds through fiscal 2023.

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