Some colleges _ like many American consumers and homeowners _ may soon discover they took on more debt than they should have, lured by low interest rates and ambitious growth plans, according to Justin Pope, an AP education writer. Figures from Moody's Investor Service on private colleges show median debt up 50 percent over the last five years.
As quarterly investment statements arrive on campus combined with state budget cuts, over-extended institutions may be at risk. While college closing announcements are anticipated, it would likely be next semester, or next fall, when schools find out how many of their students don't return.
"We've seen what's happened to family income, the financial assets of so many families," said Matt Hamill, senior vice president of NACUBO, a college business officers group. The key question is "how that will manifest itself when it comes time to enroll next fall."
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