Future of higher education upgraded to "stable"
Maybe higher education isn’t in bad shape after all.
According to Washingtonpost.com, Moody’s has officially upgraded the higher education industry to stable from negative.
“This week, the firm predicted that higher education will stabilize, for the first time post-recession, allowing more predictability in operating budgets. They upgraded the whole sector to “stable.””
The article lightly details why the rating was elevated and if it is sustainable.
Due to rising revenue because of growth in tuition and federal research funding, the industry has experienced stability, which is something higher education hasn’t been accustomed to since the start of Obama’s second term.
But that news isn’t necessarily grand for students. Tuition growth may be great for the industry as a whole because it decreases volatility, but rising college costs due to tuition increases have priced many students out of higher education.
Hopefully this will lead to a reduction in how often colleges and universities are forced to raise tuition due to budget cuts and low funding from state legislatures.
But overall, this is good news. Noting that higher education had a negative outlook was bad for all involved. An uptick in that outlook will surely help this arena in remaining stable and improving its standing in the coming years.