Higher education bonds

The Internal Revenue Service has issued guidance clarifying that state student loan programs can use tax-exempt bonds to fund parent loans for students and that tax-exempt bonds can be used for a broad range of refinancings that help student loan borrowers take advantage of lower rates.

With more colleges facing fiscal challenges issuing debt for new projects, many higher education institutions are exploring alternative forms of financing, according to Tom Morsch, co-head of Public Financial Management Inc.’s public-private partnership practice.

Six of Illinois’ eight public universities took a fresh credit blow from Moody’s Investors Service with downgrades stemming from exposure to the state’s fiscal strains and its budget crisis.

Standard & Poor's Ratings Services said it raised its long term and underlying rating to AA from AA-minus on the Board of Trustees of the University of Alabama outstanding general revenue bonds issued on behalf of the University of Alabama.

The New Hampshire Health and Education Facilities Authority’s decision to withdraw its request to settle under a special voluntary closing agreement program for student-loan bond issuers has paid off.