Colleges & Universities

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 4,000 colleges and universities in the US provide post-secondary education and award degrees to students who have developed expertise in a specific field of study. Colleges and universities include public, private non-profit, and for-profit institutions.

Tuition Increases Jeopardize Affordability

College tuition continues to grow faster than inflation and family income, making higher education less affordable.

Volatility in Government Funding

During tough economic times, state and local governments typically reduce budgets and may cut support for higher education, forcing schools to rely on tuition increases or other sources to fund the shortfall.

Industry size & Structure

A typical four-year college employs about 454 workers and generates $224 million annually. A typical junior or community college employs about 250 workers and generates $43 million annually.

    • The US has 3,982 colleges and universities which employ over 1.5 million workers and generate about $658 billion annually.
    • Colleges and universities include public, private non-profit, and for-profit institutions.
    • While enrollment can vary significantly, public colleges average about 8,900 students while private colleges average about 2,100 students. Large institutions have enrollments of 40,000 students or more.
    • Institutions with the largest enrollments include The University of Phoenix's Online Campus, Arizona State University, Ohio State University, and the University of Central Florida.
                                  Industry Forecast
                                  Colleges & Universities Industry Growth

                                  Coronavirus Update

                                  Oct 3, 2021 - Federal Stimulus Funding Used To Clear Student Debt
                                  • Everett Community College in Washington state used funding from the American Rescue Plan Act to cancel student debt for more than 3,400 people who had an outstanding balance for classes taken during the pandemic. The college is providing free on-campus housing for full-time students and up to $2,500 per student for educational expenses. The money comes from roughly $12 million the college received from the American Rescue Plan Act. The three federal stimulus packages provided billions of dollars to US colleges and universities through the Higher Education Emergency Relief Fund. Colleges and universities must spend at least half on emergency aid and grants for students. The other half is for institutions to cover their own costs associated with the pandemic.
                                  • The coronavirus pandemic has boosted interest in tuition insurance. Students or their families buy a policy that will reimburse them for all or part of their tuition and other costs of attending college if the student must withdraw from school for a documented medical or mental health reason. Experts note, however, that it’s important to know the details of how a policy works and what situations are covered. Some insurers specifically exclude student withdrawals resulting from an epidemic, and they may also exclude withdrawals because a school switched from in-person classes to remote learning.
                                  • Florida Governor Ron DeSantis signed legislation shielding the state's colleges and universities from lawsuits seeking refunds for students because of pandemic-related closures.
                                  • More than 1,000 US colleges and universities are requiring students to get Covid-19 vaccinations as of October 1, according to Best Colleges. Some schools have said they will make exemptions for medical, religious, or personal reasons.
                                  • Plaintiffs in two class-action lawsuits filed against the University of Oregon claim that they should not have been required to pay on-campus fees if they haven't been on campus. Steve Berman, an attorney for the students in both cases, said his clients did not get the full value of what they paid for when campuses closed and switched to online sessions. The lawsuits claim that the schools have refused to refund or reimburse students for tuition and other fees they paid for "a comprehensive on-campus academic experience."
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