- Moody's Investors Services' U.S. Higher Education Mid-Year Outlook sees new problems emerging for higher education in the form of shrinking endowment portfolios, a greater number of warnings and sanctions from accreditation agencies, and heightened political attention on the affordability of higher education.
- Moody's says institutions will need to adopt a market-driven approach, "accelerating the pace of tuition increases or enrolling a higher percentage of out-of-state students, and adjusting their operating models to allow for surpluses that can be carried over as cash reserves."
Public pressure to continue acting as low-cost, accessible institutions is likely to clash with that suggested model, leading to increased conflicts between boards, administrators, and faculty members.
From the article:
Moody's Investors Service's U.S. Higher Education Mid-Year Outlook, released Thursday, paints a grim picture for higher education in which existing challenges of heightened competition for students, declining revenue sources, and backlogged maintenance get worse, while new problems emerge. ...