• About Us
    • Join CAPPS Email List
    • What is Private Postsecondary Education
    • About ICEPAC
  • News
    • Legislation / Advocacy
  • Events
    • Allied Member Vendor Showcase ~ Presenter Contact Information
    • CAPPS Legislative Policy Conference April 22-23, 2021
    • 2021 CAPPS Sponsorship Opportunities
    • 37th Annual Conference
    • Educational Advisors ~ Event Calendar
  • Resources
    • Classifieds
    • Professional Online Training Center
    • State and Federal Resources
    • Accreditors
    • Boards
    • Associations
  • CAPPS Member Portal & Archives
    • CAPPS Membership Directory
    • Conference Archives
    • Member Only Webinar
    • Webinar Archives
    • Workshop Archives
    • CAPPS Member Portal
      • CAPPS Legislative Watch
      • BPPE Sunset Report
    • Featured Members
    • Select Allied or School Benefits – Why be a CAPPS Member?
      • School Membership Application & Renewal Form
      • Allied Membership Application & Renewal Form
  • Awards
    • CAPPS Memorial Scholarships
    • Excellence in Community Service Awards
    • CAPPS Hall of Fame STAR Awards
    • Norma Ford Financial Aid Professional of the Year
    • School of the Year
    • Allied Member of the Year
California Association of Private Postsecondary Schools                        
916-447-5500
Email
        Login
CAPPS
  • About Us
    • Join CAPPS Email List
    • What is Private Postsecondary Education
    • About ICEPAC
  • News
    • Legislation / Advocacy
  • Events
    • Allied Member Vendor Showcase ~ Presenter Contact Information
    • CAPPS Legislative Policy Conference April 22-23, 2021
    • 2021 CAPPS Sponsorship Opportunities
    • 37th Annual Conference
    • Educational Advisors ~ Event Calendar
  • Resources
    • Classifieds
    • Professional Online Training Center
    • State and Federal Resources
    • Accreditors
    • Boards
    • Associations
  • CAPPS Member Portal & Archives
    • CAPPS Membership Directory
    • Conference Archives
    • Member Only Webinar
    • Webinar Archives
    • Workshop Archives
    • CAPPS Member Portal
      • CAPPS Legislative Watch
      • BPPE Sunset Report
    • Featured Members
    • Select Allied or School Benefits – Why be a CAPPS Member?
      • School Membership Application & Renewal Form
      • Allied Membership Application & Renewal Form
  • Awards
    • CAPPS Memorial Scholarships
    • Excellence in Community Service Awards
    • CAPPS Hall of Fame STAR Awards
    • Norma Ford Financial Aid Professional of the Year
    • School of the Year
    • Allied Member of the Year

News

  • Home
  • News
  • Outlook for Higher Ed in 2018 Is Bleak, Ratings Agency Says

Outlook for Higher Ed in 2018 Is Bleak, Ratings Agency Says

  • Posted by Capps Events
  • Date

The Chronicle of Higher Education.

Higher education will face many of the same challenges in 2018 that it has in previous years, but additional state and federal pressures suggest a bleak outlook for the sector this year, according to the ratings agency Standard and Poor’s.

“S&P Global Ratings believes institutions with limited flexibility, whether that be in programming, financial operations, enrollment, resources, or student draw, could face credit pressure in the upcoming year,” analysts for the ratings agency wrote in a report issued on Tuesday.

Among the risks to the sector, S&P cited the recently passed federal tax overhaul and the uncertainty surrounding its material effect on institutions. “Whatever the magnitude,” the analysts expect it to be “negative in direction.” The new law enacts a 1.4-percent excise tax on some private colleges with large endowments, and though the scope of the tax is limited, the agency believes it opens the door for an expanded endowment tax — either in percentage or scope — in the future.

Further, students and parents seek decreases in the cost of attendance, while expecting better services and amenities; and as the “disparity between student expectations and willingness to pay” continues to grow, the analysts wrote, it will further strain midlevel institutions. In the long term, institutions must also be wary of reputation risk in an increasingly politicized public climate.

However, the agency says, opportunities exist for the sector if it can shed its reputation for being slow to change and continue to adopt “nontraditional or new strategies and partnerships,” like the Purdue-Kaplan and Boston University-Wheelock College mergers. And as the profile of who is going to college continues to change, so might many institutions’ recruiting and enrollment strategies to seek what was formerly considered the “nontraditional student.”

  • Share:
author avatar
Capps Events

Previous post

DeVos Waters Down Disclosure Requirements of Gainful-Employment Rule

Next post

New GAO Report on Accreditation System

You may also like

Gallup
Why IBM Chooses Skills Over Degrees
13 April, 2021
Inside Higher Ed
A Big Budget From Biden
12 April, 2021
Inside Higher Ed
Transfer Enrollment Drops
12 April, 2021

Search

Memorial Scholarship Information
Donate to ICEPAC
Become an Allied Member
Become a School Member
CAPPS Events

ABOUT US

  • What is Private Postsecondary Education
  • CAPPS Memorial Scholarships
  • Upcoming Conferences

MAILING ADDRESS:
California Association of
Private Postsecondary Schools
2520 Venture Oaks, Suite 170
Sacramento, CA  95833
info@cappsonline.org
www.cappsonline.org    

CappsOnlineMorpho Web Design.

2020 All Rights Reserved CappsOnline.org