Colleges Ramp Up Debt Sales in Frenzied Race for New Students
- Fierce competition drives colleges to renovate campuses
- Some borrowings are ‘Hail Mary’ efforts by colleges, CFO says
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US university students are up to their ears in debt. And, increasingly, so are many US colleges.
From small liberal-arts schools to giant universities, America’s ivory towers are on a borrowing binge as part of an effort to spruce up their campuses and lure the next generation of students. In just the last five months, roughly 50 colleges have tapped investors to build student centers, refurbish dorms, and make-over academic buildings as well as refinance debt — to the tune of $10 billion, according to data compiled by Bloomberg. That volume is more than double from the same time last year.