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Feb. 2, 2012 Volume 33, No. 18

Tough months ahead for higher ed, Moody’s report predicts

On Jan. 23, Moody’s Investors Service released its annual outlook report that included an analysis of higher education in America.

The report states that the next 12 months to 18 months will be particularly challenging to a majority of public colleges and universities dependent on state money, such as tthe University of Missouri.

Challenges will come from scrutiny from the public as well as state and federal governments on keeping tuition costs down even as state funding to higher education shrinks in many states, the report said. Enrollment is also expected to rise at higher-rated institutions, and decline at lower-rated institutions.

“Tuition levels are at a tipping point, and the cost of college will be a critical credit factor for universities to manage long-term,” the report said.

The UM System Board of Curators meet today and Friday to discuss a possible tuition increase.