|[December 17, 2013]
Fitch: US Non-Profit Higher Ed 2013 Enrollment Largely Positive
NEW YORK --(Business Wire)--
A modest increase in fall 2013 unduplicated student headcount will have
a positive revenue impact on U.S. four-year public and non-profit
private colleges and universities despite negative demographic
pressures. The third annual drop in headcount at two-year public
institutions should be manageable through expense controls, Fitch
Enrollment rose by 0.3% in four-year public institutions and 1.3% in
non-profit four-year private institutions, according to the National
Student Clearinghouse Research Center.
We believe the modest increases in enrollment are attributable to a
variety of factors, including growth in international enrollment and
increased acceptance of the lifelong learning concept. In general,
senior leadership teams construct budgets based on headcount estimates
that consider demographic conditions and historical data, which helps to
manage the financial impact of changing enrollment patterns.
Two-year public institutions saw a third consecutive dip in enrollment,
which was expected as demand for these institutions is generally
counter-cyclical to the overall economy. We believe that most of the
two-year public institutions will be able to adjust operating expenses
to match the reduction in revenue base. These institutions typically
wield significant labor cost flexibility.
Additional information is available on www.fitchratings.com.
The above article originally appeared as a post on the Fitch Wire credit
market commentary page. The original article, which may include
hyperlinks to companies and current ratings, can be accessed at www.fitchratings.com.
All opinions expressed are those of Fitch Ratings.
Applicable Criteria and Related Research:
2014 Outlook: U.S. Colleges and Universities
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