Higher Education News

- More comprehensive universities with diversified revenue streams will continue to outperform tuition-dependent institutions

- Steady endowment income, gift revenue, state funding and patient care offset lagging net tuition revenue

The outlook for the US higher education sector has been changed to stable from negative, Moody's Investors Service says in its 2020 outlook for the sector. Business conditions over the next 12-18 months will remain difficult for a notable portion of rated institutions and modest tuition gains will weigh on overall revenue growth. However, steady growth in other revenue streams such as state funding and endowment income will provide stability.

Moody's - Outlook for US higher education sector changed to stable from negative on steady revenue gains

The outlook for the US higher education sector has been changed to stable from negative, Moody's Investors Service says in its 2020 outlook for the sector. Business conditions over the next 12-18 months will remain difficult for a notable portion of rated institutions and modest tuition gains will weigh on overall revenue growth. However, steady growth in other revenue streams such as state funding and endowment income will provide stability.

Arizona lags other states in training and education after high school. If this trend doesn't change, it could dramatically change our economy and quality of life.

Students aren’t showing up. And it’s only going to get worse.

The credit outlook for higher education remains negative for the second year in a row, according to the latest report from Moody’s Investors Service.

It’s time for university and college CFOs to ground their institution’s goals in financial realities—and that requires more robust data and a more modern financial planning approach.