Long-term debt at not-for-profit universities in America has been growing at 12% a year. A new report looked at the balance-sheets and cashflow statements of 1,692 universities and colleges between 2006 and 2010, and found that one-third were significantly weaker than they had been several years previously. All this suggests that colleges have good cause to worry about their debts. Unlike grades, they cannot be inflated away. Universities that fail to prepare for the hurricane ahead are likely to be flattened by it. Read more at:
http://www.economist.com/node/21559936
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