New College Seeks $47.5M Borrowing Authority
The Sarasota college must arrange financing for debt tied to the former USF Sarasota-Manatee campus by Dec. 31.
Updated on Nov. 2, 2026 in Financial Aid
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New College of Florida is seeking authority to borrow up to $47.5 million to address debt attached to the University of South Florida Sarasota-Manatee campus it took over in July. The legislation requires the college to arrange financing for the facility debt by Dec. 31.
Why it matters
The transfer placed responsibility for campus debt on New College, and the legislation makes the transfer void if that debt is not addressed by the deadline. Proposed student housing rate increases would help repay the loans.
The plan includes about $40 million in BankUnited loans and a $4.3 million subordinate contribution from a private accredited investor, with the authorization allowing up to $7.5 million from that investor. Projections show early-year debt-service coverage below State University System requirements, which the New College Foundation would cover if needed.
The players
New College of Florida
A public liberal arts college in Sarasota that took over the former USF Sarasota-Manatee campus and is seeking the borrowing authority.
BankUnited
A Florida-based bank that would provide approximately $40 million through two loans under the proposed financing.
The details
Atala Hall, a six-story residence hall and student center completed by USF in 2023, carries most of the debt. Loan repayments would come primarily from student housing revenue, with residence hall rental rates proposed to rise 10% in fiscal 2028, 5% annually through fiscal 2031, and 3% beginning in fiscal 2032.
Timeline
July 1: New College took over the USF Sarasota-Manatee property.
Oct. 30: The proposal was presented to the college's Finance and Administration Committee.
Dec. 31: Deadline to arrange financing for the facility debt.
Fiscal 2028: Proposed 10% residence hall rental rate increase begins.
Legal Context
The transfer legislation made New College responsible for facility debt and voids the transfer if that debt is not addressed by Dec. 31. The borrowing proposal is the college's response to that condition.
Students living in campus housing could face residence hall rental increases of 10% in fiscal 2028, followed by 5% annual increases through fiscal 2031 and 3% beginning in fiscal 2032. The rate schedule is part of the college's proposed financial model and remains subject to approval.
The takeaway
Campus housing costs at public institutions can be shaped by debt tied to property transfers, so students should watch proposed rate schedules closely. Reviewing how a college plans to repay facility loans can clarify future housing expenses.
What happens next
The college must finalize financing arrangements before the Dec. 31 deadline.
Further reading
For more on how students finance campus housing, see Financial Aid coverage.
Source note: This article includes information reported by Tampa Bay Business & Wealth.
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