June 5, 2023 Group Watch: Legislature Approves Higher Ed Loan Program
The Alabama Legislature passed The Distressed Institutions of Higher Education Revolving Loan Program Fund last week, which could rescue Birmingham-Southern College and other financially strained colleges in the state. The bill to provide temporary aid now awaits Gov.Ivey’s signature. According to the bill, to qualify for a loan, an institution – any public or private college or university in Alabama – must have been in operation in Alabama for more than 50 years, have a substantial impact on its local community and be in danger of closing due to financial distress. It must continue operations, commit to fundraising efforts during the loan period and have assets as collateral. The State Treasurer will be in charge of determining total loan amounts, repayment interest rates and disbursement timings. The state will also conduct yearly audits of loan recipients to evaluate their financial health.
