March 14, 2008

Colleges' Debt Is Fed by Rising Bond Rates

By BRAD WOLVERTON

Interest payments soar, and institutions scramble to restructure borrowing

Dozens of colleges and universities, including some of the country's wealthiest institutions, are facing a sharp rise in interest payments on a whopping mound of debt.

About a third of the nearly 300 private institutions rated by Moody's Investors Service are financing more than half their debt with variable-rate bonds, some of whose rates have skyrocketed in recent weeks.

Many

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