More US Colleges Face Stagnating Enrollment and Tuition Revenue, According to Moody's Survey
18 pages (7859 words) —
Published Jan 10, 2013
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| Brief Excerpt: | ...Weakened pricing power and enrollment pressure are impeding top line revenue growth for an increasing number of US colleges and universities, according to our fourth annual tuition survey. The cumulative effects of years of depressed family income and net worth, as well as uncertain job prospects for many recent graduates, are combining to soften student market demand at current tuition prices. In addition to these economic challenges, tougher governmental scrutiny of higher education costs and disclosure practices is adding regulatory and political pressure that hinders tuition and revenue from rising at past rates. Federal budget negotiations may result in further pressure on colleges if student aid and loan programs are curtailed to any degree, as a rising share of students are dependent on these funding sources. For fiscal year (FY) 2013, 18% of private university and 15% of public university respondents project a decline in net tuition revenue. A much larger share--a third of private... |
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| Report Type: | Special Comment |
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| Format: | | PDF |  |
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Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.
