PULLMAN – A downturn in the price of bonds has resulted in dramatic savings for students at Washington State University.
A $15 million refinance of WSU’s Student Housing and Dining bonds at the low rate of around 3.3% has resulted in a net savings of over $2 million.
“Housing and dining at WSU is entirely supported by students,” said Terry Boston, senior executive director of Student Administrative Services. “This will save over $140,000 every year for the next 15 years.”
The refinanced bonds were originally issued in the mid-1990’s for several student housing projects. The timing of the market with low bond rates presented this opportunity for refinancing.
“We actually had nine different bidders on this refinance,” said Barry Johnston, associate vice president of business and finance. “It really reflects what’s happening in the economy right now, but it has been a great financial benefit to WSU.”