November 14, 2008
One Debt-Financing Option May Increase Risk of College Bankruptcies
A common type of variable-rate financing has suddenly increased the risk of bankruptcy for an unknown number of colleges, the top higher-education analysts at the nation's two major credit-rating agencies said last month.
The threat affects mostly less-wealthy colleges that have used variable-rate bonds either to get a better price when borrowing or because they lacked bond ratings and had little other choice, said the analysts, from Moody's Investors Service and Standard &
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