Moody's: Misleading Student Demand Creates Uncertainty

A new report from Moody's Investors Service describes how the phenomenon of high school students applying to significantly more colleges and universities is causing difficulties for institutions. The report finds that:

• A growing number of colleges are reporting yields -- the percentage of accepted applicants who enroll -- of less than 20 percent.
• Discount rates (the percentage of tuition sticker price that students and their families don't pay) are rising, limiting net tuition revenue for colleges.