Credit Agency Issues Warning on Declines In College Net -Tuition Revenue

December 7th, 2013

ARE COLLEGES READY TO ADJUST TO A NEW HIGHER EDUCATION LANDSCAPE?
Moody’s Investors Service on Friday released a report with grim news, particularly for public institutions: In a survey, 28 percent of public institutions, compared with 15 percent the year before, said they expected declines in their net-tuition revenue, increasingly the lifeblood of many institutions. For private institutions, the news was not quite as dire. Nineteen percent expected declines, compared with 18 percent last year, but that finding should come with a caveat: The Moody’s survey included only the institutions the credit-rating company evaluates, which means they are probably among the more financially stable private colleges out there. One has to wonder if American higher education is the proverbial frog in a slowly warming pot of water, not realizing that it’s about to be boiled alive. The post is from The Chronicle of Higher Education’s Bottom Line blog.

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