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Campus Finance Briefs

Survey: Tuition Revenue Will Fall in 2012

University Business, Feb 2012

The good news: The majority of U.S. colleges and universities polled in the third annual tuition pricing survey from Moody’s Investor Service project net tuition revenue growth for fiscal year 2012. The bad news: More U.S. universities anticipate tuition revenue to drop than compared to the previous year.

The report comes at a time when many schools are trying to shore up shortages from decreased government support, grants, and private gifts. Although many schools have raised tuition sticker prices, they have also increased discount rates in an effort to attract students. More than half of the private colleges in the Moody’s survey had increased discount rates over the last year.

“Sector conditions have toughened some in a weak economy and against a backdrop of a likely decline in government aid to education,” said Moody’s vice president-senior analyst Karen Kedem, co-author of the report.