A new report by Moody’s Investors Service finds that many public and private higher education institutions expect their tuition revenues to fall short of inflation. According to the report, which was based on a survey of 114 public and 173 private higher education institutions, 44% of public institutions and 42% of private institutions expect that their growth in net tuition revenue in FY 14 will fall short of the 2% rate of inflation. Further, 28% of the public and 19% of the private institutions expect net tuition revenue to decrease in FY 14. The report attributed these figures to softening student demand at current tuition prices.
Net tuition measures the actual amount of tuition revenue an institution collects. Unlike the published or “sticker” tuition price, net tuition accounts for waivers, scholarships, and other aid the institution provides.
