Moody’s Downgrades Higher Ed’s Outlook From ‘Stable’ to ‘Negative’

"The prospects for higher education are bleak, according to Moody’s Investors Service, a credit-rating agency that on Tuesday changed its outlook for the sector from 'stable' to 'negative,'" The Chronicle of Higher Education reports.

"In a report, the agency cited financial strains at both public and private four-year institutions, mainly muted growth in tuition revenue. But it also cited 'uncertainty at the federal level over potential policy changes.'

'The higher-education sector is highly exposed to changes in federal policy or funding,' the report said. 'Changes to financial-aid programs and tax reform could negatively affect enrollment and tuition-revenue growth, philanthropic support, and the cost of borrowing.'

Both the House of Representatives and the Senate have passed legislation in recent weeks that would overhaul the U.S. tax code. The bills have been harshly criticized by higher-education leaders."

NASFAA's "Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 12/7/2017

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