In the flush decades of the 1980’s and 90’s, many colleges went on “borrowing sprees” to improve facilities in order to remain competitive with their peer institutions. Some doubled their debt in the last decade as they constructed lavish fitness buildings, student centers, and other specialized facilities.
According to the New York Times, in January of this year Moody’s Investor Services put a negative outlook on the entire higher education sector and downgraded the credit rating of 22 colleges, including Wellesley. Standard & Poor’s Rating Service also recently downgraded the credit rating of 13 colleges, including Amherst, Tulane, and Yeshiva.
Sarah C. Reese, Informed Educational Solutions
Colleges Struggling to Stay Afloat (New York Times, April 12, 2013)
Moody’s Downgrades College of New Rochelle’s Bond Rating (The Chronicle of Higher Education, January 23, 2013