On the heels of a similarly downcast assessment by Standard & Poor’s, Moody’s Investors Service has issued a negative outlook for the higher-education sector in the United States. The credit-rating agency also issued individual reports on median benchmarks for the finances of public and nonprofit private colleges, noting significant tuition-revenue declines at both types of institutions.
While American higher education faces limited growth prospects over the next 12 to 18 months, Moody’s says, positive trends like strong long-term demand for higher education and reduced household debt could help create conditions for colleges to stabilize over the next year. But Moody’s cautions that the institutions will face continued financial pressures in the near term.