Slow Tuition and Revenue Growth Ahead

Moody's Investor Service's annual tuition survey forecasts slow tuition and revenue growth.

"Sluggish overall net tuition revenue growth for the sector is fueled by lingering price sensitivity, a public focus on affordability, and flat enrollment," said Eva Bogaty, a Moody's Vice President and Senior Analyst. "Smaller entering classes in much of the country over the next few years foreshadows continued revenue pressure, despite overall stable enrollment."

They suggest that brand recognition and a broad program portfolio drive performance.

"Aaa and Aa-rated private and public universities tend to be market leaders with strong brand recognition and broader programmatic offerings, leading to strong student demand and pricing power."