Moody's 'Negative Outlook' for U.S. Higher Education

LOW MOOD FOR HIGHER ED: Moody's, considered by most to be a reputable credit rating agency, has issued a "negative outlook for US higher education" (PDF) based on "limited revenue growth prospects over the next 12 to 18 months." Among the troubles that facing colleges: slower revenue growth from tuition, higher operational (facility and faculty) costs, and increased competition for sponsored research. On the upside, Moody says an uptick in demand for associate and master's programs, as well as for educated workers, "bodes well for the higher education sector" and could stabilize the industry. The Washington Post takes a look at some of the hardest-hit colleges.

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