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Ed Driscoll

Meanwhile, Back in Big Education

January 19th, 2013 - 12:06 pm

“Moody’s downgrades higher ed financial forecast,” the Daily Caller notes:

The outlook for the U.S. higher education sector is universally grim, according to a new analysis by Moody’s Investor Services.

The credit rating agency has maintained a stable outlook for research universities and a negative outlook for all other universities since 2009. But earlier this week, Moody’s downgraded its outlook for all of higher education, issuing an across-the-board negative verdict.

A Moody’s spokesperson cited poor revenue prospects as the reason for the negative outlook.

“The U.S. higher education sector has hit a critical juncture in the evolution of its business model,” said Eva Bogaty, assistant vice president of Moody’s, in a statement. “Even market-leading universities with diversified revenue streams are facing diminished prospects for revenue growth.”

If only someone had warned Big Education ahead of time that the bubble was about to burst, and they could have planned accordingly.

Will the bursting of the higher education bubble have ripples in K-12 as well? Glad you asked

Related: Besides the poor quality of education’s product, there’s also the issue of America’s graying demographics and birth dearth. Elsewhere at PJM, Myra Adams warns of the coming “Tsunami of Seniors: The Crisis Begins In 2026 When The First Baby Boomers Turn 80.”

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