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Articles: Revenues

Credit Rating Rankings: Long-term ratings used for higher ed institutions. (Click to enlarge)

The U.S. economy has been through major changes in the last several years, and the effects are being felt on campus. In many cases, this turmoil shows up publicly in the form of a credit-rating downgrade. On some campuses, a change in the credit rating has no effect on the day-to-day operations; on others, it can be devastating.

College sports should be recognized as a business, a federal judge has ruled.

Quick, what business makes more money than the NFL yet pays most of its workers next to nothing? The answer is college sports, which generate $10.5 billion in revenue, the bulk of it coming from football and basketball. Less than 30 percent of that money goes toward scholarships and financial aid for players.

Driving college loan defaults down

The coming change in how student loan default rates are calculated may mean bad news for some colleges and universities.

With the new calculations, the rate at which a group of students later defaults on loan payments will increase for most institutions, and schools with a particular default rate for three consecutive years will lose the ability to give Pell Grants. That’s why many are seeing this as the ideal time to look at how default prevention services are managed.

Tough economic times are forcing campus CFOs to expand their roles.

Rising operating costs, unstable revenue streams and continued tough economic times are forcing the campus CFO’s role to grow, say higher ed presidents surveyed by executive search firm Witt/Kieffer.

In the report, 14 presidents from a mix of public and private institutions of all sizes commented on today’s financial pressures.

Shirley Mullen is president of Houghton College (N.Y.).

Higher education is in the dock in 2014. The questions are flying:

Why does it cost so much? Why does it cost more each year?

Why do so many students not finish? Why can’t they get good jobs? Why is it not equally accessible to all?

Why is it not doing a better job training teachers for K12?

What do we have to show for the trillion dollars in student loan debt? Who will repay it?

There’s value in treating noncredit courses as more than just an add-on to degree programs.

Georgetown University officials had a bit of an epiphany recently about the impact of their noncredit courses. While the offerings had been around since the 1990s, administrators hadn’t realized the big benefits they could bring to the institution.

William M. Courson is president of Lancaster Pollard Investment Advisory Group.

Monetary policy in the United States took a dramatic turn with the introduction of quantitative easing after the financial crisis of 2008.

Although it achieved its primary objective by forcing down long-term interest rates, it also increased the supply of money in the economy, which has contributed to inflationary pressures in the past.

While we are fortunate to have witnessed a lengthy and very low inflationary environment, as money supply increases, the probability of higher inflation also increases.

42 states increased higher education funding in the past year by an average of $449, or 7.2 percent, per student. Yet, per-student funding still remains below pre-recession levels in 48 states

As the long-lasting effects of the Great Recession slowly fade, most states have begun rescinding cuts made to public higher education since 2008. 

Eight states, however, have continued reducing funds, according to a report by the Center on Budget and Policy Priorities (CBPP). Those that continued to cut per-student funding in the past year are:

Exploring the shore: Roger Williams University has found a new source of revenue in tapping its scenic waterfront campus to  expand its once tiny summer programs. (Photo: Peter Silvia)<p>

Five years after the Great Recession’s official end, higher ed endowments and fundraising are finally recovering, but there is no rising financial tide that’s lifting all boats—especially smaller ones that depend heavily on tuition.

Along with enrollment, public funding and debt, providing health care to employees will be among the top financial pressures on higher education in the coming years, say several campus administrators.

Here’s how proposed increases in some states compare to 2013-2014 budgets (and budgets of the recent past).

After years of budget cuts, some states are finally putting money back into higher education for FY2015. 

The University of Puget Sound has received a series of bitcoin donations.

The University of Puget Sound in February became the first higher ed institution to accept a gift of digital currency, when alumnus Nicolas Cary gave the Washington school 14.5 bitcoins—equal to $10,000.

Jeffrey G. Eisenbarth is vice president for business and finance as well as treasurer for Rollins College.

Central Florida is one of the country’s most popular tourist destinations, so it makes sense that hospitality enterprises can be counted on to provide a financial boost—even to higher education institutions.

Part-time students and their needs need not get lost when continuing education gets decentralized. Fairfield U reaches out to its part-timers, many of whom have young children, with events such as the Halloween-themed “Night at the Museum,” held this fall on campus at the Bellarmine Art Museum.

With funding cuts, falling enrollments and increased competition from MOOCs and other low-cost online programs, higher education has been under enormous pressure in recent years. But pressure often leads to positive change, and many schools are looking at continuing education as an ideal area for that change.

Construction budgeting software allows Southern Methodist U to maintain a digital record of projects and ensure future projects have adequate funding for site development and other line items.

A Midwestern state university budgeted about $12 million for a major addition to its library several years ago. At the time, there was not a tightly controlled project planning process at the institution and the library’s plaza—already a major central gathering space on campus—was not included in the project budget.

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