Online Learning Update

August 23, 2019

Report: ‘Hypercompetitive’ higher ed market will limit revenue growth

Filed under: Online Learning News — Ray Schroeder @ 12:10 am

By Hallie Busta, Education Dive
A “hypercompetitive” market for higher education along with a continued focus on affordability will constrain tuition revenue in the coming year even as state funding stabilizes, Moody’s analysts wrote in a report released this week. Low-to-negative net tuition revenue growth is likely for many regional public and private colleges, which will spur continued cost containment that pushes them to streamline programs and even merge, collaborate or close. While potential federal and state policy changes around student aid are the “greatest uncertainty” for higher ed, programs such as free college or loan forgiveness would “take several years to devise and implement,” the analysts wrote.

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