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Students walk past an entrance to the University of Southern California (USC) in Los Angeles on April 11, 2012 in California.
Long-term debt at not-for-profit universities in America has been growing at 12% a year, according to a new study. The costs of financing that debt are being passed along to...you guessed it: Students.
To cover the tab, schools are raising tuition and expanding enrollment. But the currents rates of increase in both areas are clearly unsustainable. Is rising institutional debt just as calamitous as student debt has become over the past decade?
Are iconic institutions of higher learning about to join the international debt crisis?
Jeff Selingo, Vice President & Editorial Director, The Chronicle of Higher Education
Peter Taylor, executive vice president and chief financial officer for University of California
Jeff Denneen, Bain & Company partner (Bain & Co. authored the study) and co-author of The Financially Sustainable University.