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May 20, 2024

Both the Minnesota House of Representatives and the Minnesota Senate passed the Higher Education Omnibus bill near the conclusion of the 2024 Legislative Session. The Higher Education Omnibus bill included a section that increased the allowable outstanding debt issued for borrowers that is issued through the Authority to $2.0 billion, a $700 million increase from the current level of $1.3 billion. The approved bill will be sent to the Governor, who is expected to sign it. The capacity increase for the Authority will be effective on July 1, 2024.

This increase is vital to the Authority. The continuing success of the Authority’s financing assistance has resulted in outstanding debt of over $1.28 billion, leaving little room to assist borrowers if the outstanding debt capacity would not have been increased.

The Authority is grateful to the legislative sponsors of the capacity increase, the House and Senate Higher Education Committee Chairs, members and staff for their assistance and guidance in getting the capacity increase drafted and approved. The firm of Carnival Berns PA and the Minnesota Private College Council also provided valuable guidance and assistance in assuring the success of the capacity increase.

The Authority is a full-service conduit bond financing authority that receives no State of Minnesota financial support. The Authority is completely funded by fees charged to borrowers. Fees are substantially lower than allowed by the Internal Revenue Service and represent a solid value for borrowers.

The bonds issued by the Authority for borrowers are not legal or moral obligations of the State of Minnesota or the Authority, nor do they constitute a debt for which the faith and credit of the Authority or the State, or the taxing powers of the State, are pledged. The Authority has no taxing powers.