Fitch: Endowment Growth May Help Some US College Tuition Levels

NEW YORK--()--Record high donations to U.S. colleges and universities will benefit the ability of some institutions to achieve strategic goals, which often include controlling tuition increases to manage affordability, and to finance campus improvements, Fitch Ratings says. According to the Council for Aid to Education, donations rose by 9% to $33.8 billion. The previous record was $31.6 billion during the 2008 fiscal year.

Contributions made by alumni were the fastest growing source of gifts, rising by almost 17% over the previous year. In our view, recent increases in the stock market, the aging of the donor population and recognition of increased student financial needs to meet rising tuition costs are likely contributing factors in this giving.

Fitch continues to observe annual giving and fundraising efforts geared toward scholarships to aid in tuition affordability. These additional funds can help institutions to balance achievement of enrollment goals and targeted net tuition growth. Many of the largest gifts mentioned in the Council for Aid to Education report were granted to universities with strong national and international recognition. In our view these institutions will continue to experience strong student demand at any conceivable cost level. Stanford University, Harvard University and the University of Southern California won the top three spots on the list of gifts.

Additional information is available on www.fitchratings.com.

The above article originally appeared as a post on the Fitch Wire credit market commentary page. The original article, which may include hyperlinks to companies and current ratings, can be accessed at www.fitchratings.com. All opinions expressed are those of Fitch Ratings.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Joanne Ferrigan, +1 212-908-0723
Director
U.S. Public Finance
33 Whitehall Street
New York, NY
or
Alexander Vaisman, +1 212-908-0721
Analyst
U.S. Public Finance
or
Rob Rowan, +1 212-908-9159
Senior Director
Fitch Wire
1 State Street Plaza
New York, NY
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

Sharing

Contacts

Fitch Ratings
Joanne Ferrigan, +1 212-908-0723
Director
U.S. Public Finance
33 Whitehall Street
New York, NY
or
Alexander Vaisman, +1 212-908-0721
Analyst
U.S. Public Finance
or
Rob Rowan, +1 212-908-9159
Senior Director
Fitch Wire
1 State Street Plaza
New York, NY
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com