The University of Minnesota appears ready to be the first institution of higher education to issue debt under the new Build America Bonds program that was created as part of the federal economic-stimulus package.

Public colleges have welcomed the new bond program, which allows institutions to receive subsidies from the government to offset some of the costs of their interest payments when issuing taxable bonds. (Taxable bonds typically pay higher rates of interest to investors than tax-exempt bonds do.)

Minnesota expects to issue $35-million in Build America Bonds, plus an additional $50-million in tax-exempt bonds. System officials said they would use the money for a number of projects, including a new medical-biosciences building on the Twin Cities campus, a new residence hall on the Crookston campus, and a renovation of Griggs Field on the Duluth campus. —Goldie Blumenstyk