Moody’s: Colleges Can Expect Another Year of Low Growth in Tuition Revenue

Revenue from tuition at private and public colleges and universities will remain “steady, but tempered” in the 2017 fiscal year, according to a report on an annual tuition survey by Moody’s Investors Service.

More than 250 institutions responded to the survey, and comprehensive private universities projected the strongest growth, at 3 percent.

As in past reports, this year’s report projects overall revenues to increase by about 2 percent and to track closely the rate of inflation. Additionally, Moody’s said low gains in tuition revenue are the “new normal” for colleges. The report cites the increased focus on affordability and a competitive environment as limits on raising tuition.

“Institutions that lack a distinct brand or strong value proposition are bearing the brunt of an increasingly value-oriented consumer,” the report says.