Financing Higher Education During a Time of Disruption

Higher education institutions have issued approximately $45 billion in taxable and tax-exempt debt to secure budgetary flexibility amid pandemic disruptions, with proceeds targeting refinancing and capital projects. As universities navigate varied fall learning models and significant revenue risks from reduced auxiliary income and athletic postponements, they are exploring asset monetization, program adjustments, and strategic mergers to mitigate financial strain. While investors remain confident in well-endowed institutions, rating agencies express growing concern over smaller public and rural universities facing declining state support and shrinking enrollment pipelines.