New College Seeks to Borrow Up to $47.5 Million
The state university's loan request would pay off campus housing debt and cover its transfer of Atala Hall from USF Sarasota-Manatee.
Updated on Nov. 12, 2026 in Financial Aid
Live Poll
Should public colleges raise student housing rates to repay loans?
New College of Florida is seeking state approval Friday to borrow up to $47.5 million, including about $28.6 million to pay off debt on Atala Hall, a 200-bed residence hall and student center it acquired from USF Sarasota-Manatee. The plan also includes about $15.8 million to pay off existing New College housing debt.
Why it matters
New College says Atala Hall will help address a housing shortage that has forced some students into hotels and off-campus apartments. The state cited the proposed financing terms, time constraints, market conditions, and New College's lack of experience in the public bond market in pursuing private loans rather than public bonds.
The proposal would be backed by housing facility revenue, a portion of student activity fees, and New College Foundation support, and would require exceptions to three state borrowing guidelines. The State University System's Board of Governors has yet to decide whether to approve the request.
The players
New College of Florida
A public liberal arts college in Sarasota that is seeking state approval for the borrowing and assumed the Atala Hall campus from USF Sarasota-Manatee.
BankUnited
A Miami-based bank that is the planned lender for about $40 million of New College's proposed borrowing.
The details
The campus transfer from USF took effect July 1, and the loans would be used to pay off Atala Hall and existing housing debt. Housing rates would increase at least 10% in Fiscal Year 2028 and at least 5% annually for the following three years, with about $37 million still outstanding when the loans come due for refinancing in 2032.
Timeline
July 1: The campus transfer from USF Sarasota-Manatee took effect.
Nov. 4: A Division of Bond Finance memorandum warned of New College credit risk.
Friday, Nov. 13: New College seeks state approval to borrow up to $47.5 million.
Fiscal Year 2028: Housing rates are scheduled to increase at least 10%.
2032: The loans come due for refinancing with about $37 million outstanding.
Context
The request requires exceptions to three state borrowing guidelines set under the State University System's Division of Bond Finance, which is why New College is pursuing private loans rather than public bonds. Its 2032 refinancing deadline and the Division's November memorandum on New College credit risk frame how the Board of Governors will weigh the proposal.
If approved, housing rates at New College would rise at least 10% in Fiscal Year 2028 and at least 5% annually for three years after that, directly affecting what students pay to live on campus. Students relying on the college's housing should watch for these rate increases in future housing contracts.
The takeaway
Housing costs at New College are set to climb in the coming years as the college takes on debt for its new residence hall. Students planning to attend should budget for steeper on-campus housing rates through at least the late 2020s.
What happens next
The State University System's Board of Governors is scheduled to consider the New College borrowing proposal after the trustees' approval, and housing rates are set to rise at least 10% in Fiscal Year 2028.
Further reading
For more on how students pay for housing and tuition, explore our Financial Aid coverage.
Live Poll
Should public colleges raise student housing rates to repay loans?
