Borrowing for college A comparison of long-term debt financing between public and private, nonprofit institutions of higher education

Institutions of higher education provide an excellent opportunity to compare long‐term debt financing in the nonprofit and public sectors. The proposed models explain the long‐term debt per student at public and private‐nonprofit research universities. Student enrollment, enrollment growth, total as...

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Bibliographic Details
Published inPublic budgeting & finance Vol. 34; no. 2; pp. 84 - 104
Main Authors Denison, Dwight, Fowles, Jacob, Moody, Michael J.
Format Journal Article
LanguageEnglish
Published Malden Blackwell Publishing Ltd 01.06.2014
Subjects
Arbitrage
Assets
Bond issues
Borrowing
College Students
Colleges and universities
Corporations, Nonprofit
Debt
Debt financing
Enrollment
Enrollments
Financial Support
Finanzierung
Higher Education
Incentives
Long term debt
Nonprofit organizations
Public Debt
Public Finance
Public Sector
Revenue
Student
Students
Studium
Verschuldung
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Summary:Institutions of higher education provide an excellent opportunity to compare long‐term debt financing in the nonprofit and public sectors. The proposed models explain the long‐term debt per student at public and private‐nonprofit research universities. Student enrollment, enrollment growth, total assets, and revenue variables as a group all influence debt levels. The strongest predictors of debt balances are the fixed characteristics of the universities themselves. Empirical evidence from the university sector also suggests the absence of a powerful arbitrage incentive to issue debt.
Bibliography:ArticleID:PBAF12034
Views expressed in the article are the authors' views and may not reflect those of the United States Department of State.
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ObjectType-Article-1
SourceType-Scholarly Journals-1
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content type line 23
ISSN:0275-1100
1540-5850
DOI:10.1111/pbaf.12034