University Business - February 2012 - (Page 15)

CFO Student Loans: The Next Bubble? A Survey by the Professional Risk Managers’ International Association January 2012 CAMPUS A report by credit score analyst FICO shows growing concern for the stability of the student loan market, putting additional strain on the fragile economy. U.S. US CONSUMER CREDIT RISK Trends and Expectations student loan debt now exceeds credit card debt, with an estimated $750 billion in outstanding student loans.More than two-thirds of bank risk professionals surveyed expected loan delinFICO quencies to rise. “Evidence is mounting that student loans could be the next trouble spot for lenders,” says Andrew Jennings, chief analytics officer at FICO and head of FICO Labs. “A significant rise in defaults on student loans would impact lenders as well as taxpayers, who could be facing big losses due to these defaults. Our survey results underscore the ongoing challenges that millions of American households face as they try to cope with their debt during these uncertain times.” A detailed report of FICO’s quarterly survey results is available at http://goo.gl/NCfqf. FOURTH QUARTER 2011 w w w. P R M I A . o r g PRMIA thanks our survey sponsor  Student Textbook Spending Declines With ever more affordable options available to them, a new report shows that students are spending somewhat less on average for their textbooks than in previous years. According to the Student Watch study conducted by the OnCampus Research division of the National Association of College Stores (NACS), students spent $655 on required course materials this year, down from $667 two years ago and from $702 four years ago. “This is terrific news for students, who continue to be pressured by the higher cost of attending college. The steady decline indicates that the money-saving strategies college stores are implementing to keep required course materials as affordable as possible for their students are having a positive impact,” said Julie Traylor, NACS’ chief of planning and research. Textbook rental has caught on in a big way at colleges and universities around the country, thanks to efforts by campus retailers such as Follett and Barnes & Noble. In 2009, there were approximately 300 campus stores offering rental options. That number had grown to more than 2,500 last fall. Students can often save up to 66 percent off the price of a new print textbook. College stores are also carrying more used textbooks (a 25 percent savings) and digital (a 40 percent savings), according to the report. Industry News Heartland Payment Systems’ Campus Solutions division has been awarded contracts by 12 higher education districts and campuses totaling 20 different colleges to manage financial aid disbursement and refund management with its electronic financial aid disbursement product. ... Higher One has entered into an agreement with Wright Express Financial Services Corporation, a provider of business payment processing and information management solutions. Wright Express Financial Services Corporation will establish and maintain Higher One’s OneAccount for a portion of Higher One’s customers. Higher One will continue to administer the accounts, providing customer services and other functions such as processing and technology-related aspects of the accounts. ... Lumina Foundation has awarded more than $1.1 million in grants aimed at helping students learn about college and financial aid. Lumina says the “Next Generation Student Supports” project is part of its broader goal to increase access to higher education. Survey: Tuition Revenue Will Fall in 2012 The good news: The majority of U.S. colleges and universities polled in the third annual tuition pricing survey from Moody’s Investor Service project net tuition revenue growth for fiscal year 2012. The bad news: More U.S. universities anticipate tuition revenue to drop than compared to the previous year. universitybusiness.com The report comes at a time when many schools are trying to shore up shortages from decreased government support, grants, and private gifts. Although many schools have raised tuition sticker prices, they have also increased discount rates in an effort to attract students. More than half of the private colleges in the Moody’s survey had increased discount rates over the last year. “Sector conditions have toughened some in a weak economy and against a backdrop of a likely decline in government aid to education,” said Moody’s vice president-senior analyst Karen Kedem, coauthor of the report. February 2012 | 15 http://www.goo.gl/NCfqf http://www.universitybusiness.com

Table of Contents for the Digital Edition of University Business - February 2012

University Business - February 2012
Contents
Editor's Note
College Index
Ad Index
Behind the News
Financial Aid
Campus CFO
Education Gateways
5 Things Administrators Must Know About E-commerce Now
There’s an App for That
Internet Technology
End Note

University Business - February 2012