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ERIC Number: EJ889841
Record Type: Journal
Publication Date: 2010-Apr-15
Pages: 1
Abstractor: ERIC
Reference Count: 0
ISBN: N/A
ISSN: ISSN-1557-5411
Seeing Red
Galuszka, Peter
Diverse: Issues in Higher Education, v27 n5 p11 Apr 2010
This article reports on a study by the National Association of College and University Business Officers and Commonfund Institute that reveals increasing debt further threatens the financial security of U.S. colleges and universities in the aftermath of the recession. Debt increases rapidly as endowments drop and deficit-racked state governments slash spending. The NACUBO-Commonfund survey notes that public schools carried the highest average debt of $616.8 million, more than five times that of smaller schools ($121.1 million). This added debt load stems from borrowing to meet short-term obligations and operating revenue needs as well as to finance long-term capital programs to build buildings and acquire equipment. The NACUBO report remarks that increasing numbers of colleges and universities appear to be mortgaging their campuses to access and secure lines of credit. The author describes four other approaches colleges use to handle debt: (1) renegotiate interest rates on existing debts; (2) swap interest rates; (3) issue bonds; and (4) pinch pennies.
Cox, Matthews and Associates. 10520 Warwick Avenue Suite B-8, Fairfax, VA 20170. Tel: 800-783-3199; Tel: 703-385-2981; Fax: 703-385-1839; e-mail: subscriptions@cmapublishing.com; Web site: http://www.diverseeducation.com
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Higher Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A