ERIC Number: ED333770
Record Type: RIE
Publication Date: 1990
Making the Grade. The Chemical Bank Study of Colleges, Universities, & Prep Schools.
Chemical Bank, New York, NY. Health Care and Education Finance Group.
In order to determine the financial concerns and needs of higher education institutions and preparatory schools, 200 telephone interviews were conducted during January and February 1990 with 150 colleges or universities and 50 preparatory schools randomly selected and located in New England and the Mid-Atlantic states. Results showed that schools appear to be stable though facing financial problems. However, more than 25 percent dip into endowment funds to cover operating costs. Financial problems include curtailed aid programs for students, enrollment decreases, and collection and cash flow problems. Sixty-eight percent of schools have currently outstanding loans, most from banks or a state authority, with the funds used for capital improvements, maintenance, and bridge financing. Schools tend to be loyal bank customers, and many use outside investment managers. Schools monitor their cash position manually using internal ledgers, telephone contacts, and monthly statements. Schools look to banks primarily for deposits, investment, and cash management services and are generally satisfied with their banks. Banking problems mentioned were errors and fees, while reasons to terminate a banking relationship were the bank's own financial difficulties, low interest rates or poor services. (JB)
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: Chemical Bank, New York, NY. Health Care and Education Finance Group.