New College Housing Rates to Rise After Borrowing

Students at New College could see housing rates climb at least 10% in Fiscal Year 2028 if state regulators approve the proposed $47.5 million in loans.

Updated on Nov. 12, 2026 in Financial Aid

Photograph of a low-rise brick residence hall with a metal roof, framed by live oaks and palmettos under bright Florida daylight. — New College of Florida asked state regulators to approve up to $47.5 million in borrowing, with housing rates set to rise at least 10% in Fiscal Year 2028. AI Illustration. Upload story photo >

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Should public colleges raise student housing rates to repay loans?

New College of Florida is asking state approval to borrow up to $47.5 million to pay off housing debt and take on a former University of South Florida campus. The request goes to the State University System's Board of Governors after the college's trustees approved it.

Why it matters

New College says the financing will help address a housing shortage that has forced some students into hotels and off-campus apartments. For students, the proposal means housing costs are likely to rise, since rates would increase at least 10% in Fiscal Year 2028 and at least 5% annually for the following three years.

The loans total up to $47.5 million, with about $28.6 million going to pay off debt on the 200-bed Atala Hall and about $15.8 million to existing housing debt. Repayment is backed by housing facility revenue, a portion of student activity fees, and New College Foundation support, and the financing requires exceptions to three state borrowing guidelines.

The players

New College of Florida

A small public liberal arts college in Sarasota that is seeking the borrowing and assumed the former USF Sarasota-Manatee campus.

BankUnited

A Florida-based bank that is the planned lender for about $40 million of New College's proposed borrowing.

State University System's Board of Governors

The state body that oversees Florida's public universities and will consider New College's borrowing proposal.

The details

New College plans to borrow about $40 million from BankUnited and about $4.3 million from an unnamed private lender, which has agreed to provide up to $7.5 million more if needed. The proceeds would retire debt on Atala Hall, a residence hall and student center acquired from USF, and refinance existing New College housing debt. Because the loans are backed partly by student activity fees and housing revenue, students would help cover repayment through housing charges and fees. Housing rates would rise at least 10% in Fiscal Year 2028 and at least 5% a year for the following three years.

July 1: The campus transfer from USF took effect.
Nov. 4: A Division of Bond Finance memorandum warned of New College's credit risk.
Nov. 13: New College seeks state approval to borrow up to $47.5 million, pending Board of Governors consideration.
Fiscal Year 2028: Housing rates increase at least 10%.
2032: The loans come due for refinancing with about $37 million still outstanding.

Education Landscape

The proposal comes as New College takes on a former USF campus and confronts a housing shortage that has pushed some students into hotels and off-campus apartments. It also shows how public colleges in Florida are turning to private loans when public bond options are less practical.

Students at New College should expect housing rates to rise at least 10% in Fiscal Year 2028 and at least 5% a year afterward if the financing is approved. Families planning for housing costs may want to ask the college's financial-aid or housing office how the increases would be reflected in their bills.

The takeaway

The proposal shows how public colleges can use private financing when public bonds are less workable, and that cost can flow through to students. Students and families can check whether the Board of Governors has acted and ask the college's financial-aid office how any housing rate increases would affect their budget.