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State Treasurer’s office launches loan program to help distressed colleges

The bill came about in large part due to financial troubles at Birmingham Southern College.

Birmingham-Southern College
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State Treasurer Young Boozer announced Thursday that the Distressed Institutions of Higher Education Revolving Loan Program is now available on the treasurer’s website and open to receive applications.

Enacted by the Alabama Legislature in the 2023 regular session, the program authorizes the state treasurer to establish terms and conditions of the loans. The Legislature appropriates $30 million in the Education Trust Fund supplemental budget for the program.

Boozer announced last week that he had requested an opinion from Attorney General Steve Marshall on the constitutionality of the program, and reported Thursday that he has received that opinion and can now proceed with the program.

The bill came about in large part due to financial troubles at Birmingham Southern College, with this bill providing a remedy to keep the school’s doors open.

All applicants will be required to submit information and documentation in support of the original application. The treasurer will review all applications and perform a thorough investigation to determine each applicant’s qualifications and ability to repay. During the evaluation process, the Treasurer may request additional information or documentation from the Institution. No guarantee is made that proceeds for loans will be available or that any applicant will receive any loan proceeds from the fund, and the treasurer reserves the right to deny any or all applications.

A single hard paper copy as well as a single electronic (i.e. flash drive) copy of the completed application and all supporting documents should be submitted to:

Office of State Treasurer Young Boozer
Attn: Chad Wright
Alabama State Capitol
600 Dexter Avenue, Suite S-100
Montgomery, Alabama 36104

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It is the responsibility of the institution to ensure that its application with all documentation is delivered and received at the address above.

Jacob Holmes is a reporter at the Alabama Political Reporter. You can reach him at [email protected]

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