Standard & Poor’s Rating Services has issued a negative outlook for nonprofit higher education for 2015, citing, among other things, tension between rising costs to colleges and a focus on student affordability. In a report released on Thursday, the agency says the ensuing competition among colleges to attract top students will weigh heaviest on “those whose credit characteristics are already on the cusp of a lower rating.”
The report, “Upping The Ante: Costs of Luring Top Students Keeps the Outlook Negative on U.S. Not-for-Profit Higher Education Sector,” cites compliance—with organizations like the NCAA and the federal government—and risk management as two factors contributing to the mounting costs to attend college.