The financial landscape of Ivy League universities is experiencing a notable shift. A consistent pattern has emerged – substantial borrowing across student populations, primarily fueled by a “prestige premium.” These universities, Harvard, Princeton, and Yale, are employing this strategy to bolster their prestige and attract a highly qualified student base. This practice has led to a considerable increase in debt, a concern given the long-term implications for their financial health and potential future borrowing options. Institutions are currently assessing the implications of these increased debts, and monitoring the situation closely.
Credits: Finance & economics