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Amid 'Negative Outlook' for Higher Ed, Moody's Finds Optimism

Amid 'Negative Outlook' for Higher Ed, Moody's Finds Optimism
July 15, 2014

The financial picture for higher education remains negative, but “green shoots” of stability are emerging, according to a new industry outlook by Moody’s Investors Service.

The usual concerns about higher ed still apply: because students and families worry about price and cost, colleges can’t much raise tuition to increase their revenue; state funding will increase, but not enough to keep up with the growth in expenses; competition for sponsored research will continue to be fierce; and demographic forces will exacerbate stress at weaker colleges, among other concerns.

Moody’s still finds reasons for hope. Among them: long-term demand for higher education remains strong, particularly interest in associate and master’s degrees; rebounds in the job and housing market augur well for the higher ed sector; and endowment returns continue to grow.

 

 

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