Universities could wind up in the same fix as their students: Too much debt, not enough income to pay it back.
"At the corner of Fifth Avenue and 14th Street in Manhattan, you can see higher education’s ambitions reaching to the sky. The New School’s 16-story University Center nears completion at a cost of $353 million.
The edifice is impressive. But would you want to hold the mortgage on it? That’s what you have, in effect, if you buy a tax-exempt bond from the New School. Before you invest in debt backed by an educational institution, think about the precarious state of this sector of the economy."