Pricing, Enrollment Issues Felt at Colleges Across U.S.

Lynn Russo Whylly's picture
Thursday, January 17, 2013

A recent Moody's Investors Service report highlighted the pressures facing American colleges and universities, finding that pricing and enrollment issues have hampered their ability to earn money from tuition.

The report found smaller institutions are more susceptible to these pressures because of their reliance on tuition. Western New York has more than 20 colleges and the University at Buffalo is probably the only one that transcends the description "small," based on enrollment.

"The cumulative effects of years of depressed revenue and net worth, as well as uncertain job prospects for many recent graduates, are combining to soften student market demand at current tuition prices," said Emily Schwarz, a Moody's analyst and lead author of the report, titled "More U.S. Universities Expect Tuition Revenue Declines; Larger, Diversified Universities Favored in Tough Higher Education Market."

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