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Qualified Loans to School Districts
2025 School Bond Qualification and Loan Program Annual Report
Qualified Loans to School Districts
A total of $97 million was loaned to school districts in fiscal year 2025 and as of September 30, 2025, 110 school districts were participating in the School Loan Revolving Fund. Of the 110 participating school districts, 61 were in the “borrowing” mode and 49 were in the “repayment” mode. Exhibit 8 demonstrates the loan and repayment activity over a 10-year period. See Appendix C for a detailed listing of qualified school loans as of June 30, 2025.
School Bond Loan and School Loan Revolving Fund Activity Summary
Exhibit 5 tracks borrowing and repayment activity within the School Loan Revolving Fund over the past decade. The chart illustrates annual fluctuations in new loans issued to school districts and repayments returned to the fund. In fiscal year 2025, 110 districts participated in the program, with some districts borrowing and others in repayment status.
|
Fiscal Year |
November Loans Processed |
May Loans Processed |
Total Loans Processed |
Total Loan Repayments Received |
|---|---|---|---|---|
|
2016 |
20,985,660 |
131,834,200 |
152,819,860 |
876,165,915 |
|
2017 |
17,207,009 |
218,845,510 |
236,052,519 |
528,053,933 |
|
2018 |
17,641,057 |
321,959,210 |
339,600,267 |
42,860,403 |
|
2019 |
20,280,781 |
412,327,235 |
432,608,016 |
109,095,504 |
|
2020 |
24,859,131 |
475,703,229 |
500,562,360 |
1,374,400,879 |
|
2021 |
27,773,335 |
469,767,851 |
497,541,186 |
466,326,426 |
|
2022 |
18,940,207 |
308,496,038 |
327,436,245 |
35,797,646 |
|
2023 |
16,367,965 |
213,860,844 |
230,228,809 |
23,366,237 |
|
2024 |
13,414,615 |
111,614,003 |
125,028,618 |
78,210,640 |
|
2025 |
6,538,439 |
91,376,185 |
97,914,624 |
55,783,407 |
|
Average |
18,400,819.90 |
275,578,430.50 |
315,764,208.89 |
359,006,099.00 |
Exhibit 5 Loan Activity Summary. Note (*) Repayments also include loans that were refinanced as bonds.
The interest rate charged on outstanding loans during fiscal year 2025 was an average of
4.381 percent. Exhibit 6 reflects the average annual interest rates applied to school districts’ outstanding qualified loan balances for the School Bond Loan Fund (SBLF) and the School Loan Revolving Fund (SLRF) over a 10 year period. Prior to April 1, 2013, different methodologies were used to calculate the interest rates for SBLF loans and SLRF loans. Beginning April 2013, the interest rate used to calculate interest expense on both SBLF and SLRF loans was the greater of three percent or the average annual cost of funds to finance the loan program plus 0.125 percent until April 2022, when the floor of 3% was removed from statute. The average annual interest rates are reported on the state's fiscal year.
Annual Loan Interest Rates
Exhibit 6 shows annual interest rates for the School Bond Loan Fund/State Loan Revolving Fund (SBLF/SLRF) from 2016 through 2025. Interest rates remained relatively stable between 2016 and 2021, ranging from 3.00% to 3.36%. Rates declined to a low of 2.26% in 2022 before increasing sharply to 4.02% in 2023 and peaking at 4.52% in 2024. The 2025 rate decreased slightly to 4.38% but remained significantly higher than rates observed during the 2016–2022 period.
|
Year |
SBLF/SLRF |
|---|---|
|
2016 |
3.35% |
|
2017 |
3.16% |
|
2018 |
3.17% |
|
2019 |
3.36% |
|
2020 |
3.11% |
|
2021 |
3.00% |
|
2022 |
2.26% |
|
2023 |
4.02% |
|
2024 |
4.52% |
|
2025 |
4.38% |
Exhibit 6 Annual Loan Interest Rates