PA Higher Education System Demoted
By: Laura Hartog
Updated: October 25, 2012
Pennsylvania's higher education system took a hit this week -- it was downgraded by Moody's Investors Service.
The credit rating agency says it was cut from AA2 to AA3 because of a drop in enrollment and high employee pensions and health care costs. The rating change will affect the state system of higher education's bonds -- about $1,5 billion.
The downgrade marks another hurdle the state's education is facing this week. On Monday the Institute for College Access and Success released a report saying college grads in Pennsylvania carry more student loan debt than those of any other state. Wednesday the College Board reported Pennsylvania is the fourth highest for college tuition costs.
The price of education isn't just high in our state. But there are signs the escalation is slowing.
A new report by the College Board shows tuition at public universities is up nearly 5% this fall.
That's less than the last two years. The cost of private colleges is also higher after declining for three years. The report finds enrollment has leveled off and borrowing for tuition is down.
