Private colleges likely won’t see big net tuition growth anytime soon, Fitch says
Ben Unglesbee
July 15, 2024
Fitch Ratings found a 1.1% year-over-year increase in net tuition revenue for fiscal 2023, but this isn’t enough to preserve margins at private nonprofits.
Dive Brief:
Fitch Ratings found net tuition grew in fiscal 2023 among the colleges it rates but warned that the hikes would not be sufficient to preserve margins for private nonprofits.
Across its portfolio of rated institutions, Fitch found a 1.1% year-over-year increase in net tuition and fees, marking renewed growth after two years of declines, according to Fitch Senior Director Emily Wadhwani.
“In our view, prospects for future growth in net tuition for 2024 and beyond remain limited, and will likely remain near or below 2%-2.5% annually on average for the next few years,” Wadhwani said by email.
