Describes how Harper Community College in Illinois, partnering with its financial advisor Kane, McKenna Capital, Inc., worked to receive the best bond rating available from Moody's Investors Service, thereby saving taxpayers three million dollars. (EV)

A university's financing choices cover many shades of gray. Some off-balance-sheet financing uses no debt capacity, while others represent or imply full financial commitment. Many others fall in between. The choices made by a number of institutions in financing facility expansions or improvements are discussed, and the Moody's Investors Service…

A credit-rating tool for colleges seeking bond financing is described, using The Colorado College experience as a case study. The process discussed gives college chief financial officers a better understanding of how the bond rating agencies evaluate institutions' credit-worthiness. Substantial data charts and graphs are use for illustration. (MSE)

Offers advice to higher education institutions about financing decisions on their debt portfolios. Addresses developing a debt management framework, factors affecting strategy, interest rate management, establishing a debt management benchmark, and adopting a prospective approach. Sidebars discuss the trade-offs of credit offerings, and…

In the process of restructuring its debt and taking on additional debt, Franklin Pierce College (New Hampshire) accepted the consequences of a downgrade in its investment-grade rating. This resulted in a successful bond sale, with bonds carrying an insured single-A rating. Events leading up to the restructuring and credit issues considered by the…

Recent improvements in corporate credit card programs have allowed colleges and universities to let end users make their own small dollar purchases. This makes purchasing small items quicker and more convenient and eliminates purchasing department efforts, achieving significant operational savings. However, careful control of the system is…

Issues in credit rating for colleges and universities are discussed, along with the information needed by Standard and Poor's to rate the institutions' bond issue. (MSE)

A study at California State University, Fresno investigated the relationship between Perkins' Loan recipients' (n=429) credit records, loan default rates, and age. For eight different age groups, credit checks revealed student distribution in four credit categories. Results show credit checks could have saved the program a great deal of money.…

This article presents arguments in favor of the federal government providing loans directly to higher education students (without intermediate lenders and secondary markets). It explains loan funding, processing, fund dispersal, college responsibilities, and remaining legislative hurdles. It attempts to dispel myths, such as that direct loans…

A survey of 787 colleges and universities investigated institutions' payment and pricing practices designed to attract and retain students. Issues examined include acceptance of credit cards, cash discounts, prepayment options, differential pricing based on credits or programs, and the rationales for and results of the policies. Results reflect…

Nova Southeastern University, Florida, has implemented a variety of techniques of cost containment for campus credit card transactions. These include restricted card acceptance parameters, careful merchant rate negotiation, increased automation of transaction processing, and sophisticated processing techniques. The university has demonstrated…