Moody's Report Paints Gloomy Picture for Colleges

A new report by Moody's Investors Service sets a cautious tone for private colleges and universities in 2008 and 2009. The slowing economy, declining investment returns, and student-loan uncertainty are all factors that could collectively chip away at the steady financial improvements private institutions have made in recent years.

The report, based on financial data from the 281 private institutions that Moody's rates, says that colleges fared well in fiscal 2007 in each of the areas

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