Despite Fading Economy, 2008 Outlook for Colleges Is Stable, Analysts Say

The immediate financial picture for American higher education is stable despite signs that the economy is weakening, according to the two largest agencies that rate college bonds.

Even with that generally positive view, Moody's Investors Service cites several factors that could spell longer-term problems — most notably rising public scrutiny of colleges' financial practices.

The report, "2008 U.S. Higher Education Outlook," also warns that some colleges in the

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