Colleges, Universities Hit by Credit Crisis

Higher ed is heavily invested, needs to reassess plans
By Gabriel Winant,  Newser Staff
Posted Oct 3, 2008 2:12 PM CDT
Colleges, Universities Hit by Credit Crisis
Middlebury College economics professor Michael Claudon sits on the college campus in Middlebury, Vt., Tuesday, July 22, 2008. Claudon started a course at Middlebury College in Vermont that's designed to better prepare students to for the business world. (AP Photo/Toby Talbot)   (AP Photo/Toby Talbot)

Watching their endowments go south, their fundraising slow, and access to credit dry up, many colleges and universities are in crisis-planning mode, the Boston Globe reports. Some schools may have to freeze hiring and halt new construction, as Boston University did Tuesday, or raise tuition. Pricier schools are predicting fewer applicants in a weakening economy.

Credit will be harder to secure, for both colleges and students, potentially exacerbating the downturn. A rough financial patch for higher education is also likely to have ripple effects in student-heavy areas like Boston, as construction projects are canceled and students tighten their belts.
(More higher education stories.)

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