Online Learning Update

July 14, 2019

Moody’s: College revenue growth lagged in 2018

Filed under: Online Learning News — Ray Schroeder @ 12:03 am

By Shailaja Neelakantan, Education Dive
Decreases or low growth in tuition revenue was a key cause of declining revenue overall at public and private colleges in 2018, Moody’s Investors Service said in a pair of reports on higher ed finances. At public institutions the situation was compounded by lagging state support, while private colleges struggled to curtail expenses. Revenue growth was below 3% at more than half of public colleges, with the median value falling to 2.4% from 2.9% a year ago. Private colleges’ median revenue growth held steady at 2.4% year-over-year, though it trailed a median 2.9% increase in expenses for the third-straight year.┬áLarger institutions outperformed their peers in both sectors as the combination of declining enrollment, slow recovery of public funding and rising tuition stressed revenue.

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