The University took action this spring on two financial fronts, one to support building projects and the other to increase students’ tuition and fees. The sale of $250 million in construction bonds will go toward 19 building projects, including several at the UVA Health System. Bolstered by the strongest possible rating from the three major credit agencies, the University was able to sell the bonds at a taxable rate of 6.2 percent.
“We are very pleased with the very positive outcome of the $250 million bond issue, especially in the midst of such a difficult economic environment,” says Leonard W. Sandridge, executive vice president and chief operating officer.
With the April 15 sale, UVA became the nation’s first institution of higher education to offer Build America Bonds, which are partially subsidized by the U.S. Treasury through a law signed in February. University officials estimated that participating in the program could save about $60 million in interest payments over the course of the bonds’ 30-year term.
Also in April, the University’s Board of Visitors approved increases in tuition and fees for undergraduate students. For in-state students, who represent about 69 percent of undergrads, the new amount comes to $7,873, an increase of about 5 percent.
Officials anticipated greater in-state increases, but the allocation of $10.7 million in temporary federal stimulus funding helped mitigate increases for the next two years.
For out-of-state students, tuition and fees will be $29,873, an increase of 7.5 percent.
More than a third of the incremental revenue realized from the increases will go toward AccessUVa, the University’s financial aid program.
“[Board members are] committed to AccessUVa, which has distinguished the University as a national leader in recruiting and enrolling a more socio-economically diverse student body,” Sandridge says.