Gov. Ralph S. Northam announced Tuesday a two-year $300 million plan to help Virginia’s public colleges and universities weather the financial crisis the COVID-19 pandemic has created — without taxpayers having to foot the bill.

Under the governor’s two-part plan, the state’s higher education system, including community colleges, would not have to repay state-issued debt on buildings, dorms and other infrastructure for the next two years, helping them to avoid default due to campus closures and enrollment declines.

In addition, the governor announced that higher-education debt issued through the Treasury Board of Virginia and the Virginia College Building Authority would be refinanced at the current low interest rates, just as many homeowners are doing.

While the loans would be extended two years to account for the moratorium on repayment, the lower rates would mean less interest and smaller annual payments.

State Secretary of Finance Aubrey Lane produced a list of potential savings for each of the 15 state-supported institutions and the state Community College System.

According to the list, Virginia State University would save $12.8 million, while Norfolk State University would save $8.2 million and Virginia Commonwealth University would save $23.1 million.

The plan drew cheers from Democratic leaders of the General Assembly’s money committees, Delegate Luke Torian of Prince William County, chair of the House Appropriations Committee, and Sen. Janet Howell of Fairfax, chair of the Senate Finance Committee.

“Helping public colleges and universities restructure their debt obligations will allow them to focus their resources on the pressing needs they face right now,” Delegate Torian stated in supporting the governor’s actions.