Harvard, Princeton, and Yale, the famed Ivy League universities, are currently facing a substantial increase in debt. This increase is largely driven by a “prestige premium” – a practice wherein universities prioritize attracting and retaining exceptional students. As a result, tuition and operating expenses are rising, creating a financial pressure on these institutions. The financial impact is being felt across the board, necessitating renewed strategic planning. The trend is a result of increased enrollment, and a growing emphasis on academic reputation. The current level of debt represents a significant challenge for both the universities and the overall economy.
Credits: Finance & economics