$7.24 million in savings for HLC
Refinancing expected to provide substantial opportunity for student scholarships, procurement.
April 10, 2018
Metropolitan State University of Denver is refinancing the Hospitality Learning Center, and the savings mean more money to pass along to student scholarships.
Starting in 2020, the current effective interest rate of 4.4 percent would be lowered to 3.1 percent, thanks to a strategy called an advance refunding swap, said Steve Kreidler, vice president of administration, in the April 9 President’s Cabinet meeting.
The new rate anticipates a savings of $7.24 million for the HLC over the course of 22 years, which could be used in a number of ways such as funding scholarships, reinvestment in the HLC or other support for students, Kreidler said.
“These are historically low interest rates, so we wanted to take advantage of that,” he added. “As the savings from the hotel become profit, a good chunk of it is shared among scholarships – that means millions directly back for our students.”
The plan received the endorsement of the MSU Denver Board of Trustees at its February meeting and the HLC@Metro Board, which oversees the HLC.