Tag Archives: New York Times

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Moody’s Blues

The time for bold action by university leaders is now, the credit agency says.

On the 16th of January, Moody’s Investors Service issued a report entitled “US Higher Education Outlook Negative in 2013.” Inside Higher Ed followed with an article on the findings in the report the next day. The report, and the article, were sobering reading for university administrators, and, in some quarters, more than a little frightening.

Moody’s, one of the three major credit rating agencies worldwide, has downgraded its outlook for the entire U.S. higher education sector from stable to negative. Based on a careful analysis of data over the past several years, Moody’s concludes that there is “mounting pressure on all key university revenue sources, requiring bolder actions by university leaders to reduce costs and increase operating efficiency.”

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Should Price Reflect Cost? (Part 1)

Tuition could be reduced, more students might earn degrees, and less debt would greet them after graduation

In a major front-page, above-the-fold article on Sunday, 23 December, The New York Times told of the widening gap in college completion rates for high-income versus low-income students. The Times illustrated the broader story with specific examples, including one of a student who was admitted to Emory University on what she thought was a full-need scholarship – but, because of problems in completing her financial aid forms, she arrived to find she had no institutional aid, and needed to borrow $40,000 just to enroll for her first year. Ultimately, her financial problems reached the point where her grades suffered, and she was suspended in her senior year. She now has an educational debt of almost $60,000, but no degree.