Increased federal financial aid and research, funding is credit positive for universities

Source: Jared Brewster, Susan I Fitzgerald, Edith Behr, Kendra M. Smith, Moody’s, Sector Comment, March 28, 2018
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The recently enacted federal spending bill provides funding increases for key financial aid programs and federal agencies that provide research grants. Financial aid programs receiving a funding bump include Pell Grants, the Federal Supplemental Education Opportunity Grant (FSEOG) Program and the Federal Work-Study (FWS) Program. Significant providers of research and development (R&D) grants with a funding boost include the National Institutes of Health (NIH) and the National Science Foundation (NSF). These funding increases are better than we expected in our 2018 outlook for higher education and are credit positive for the sector overall.

Related:
Federal capital programs provide credit positive financing for some universities
Source: Jared Brewster, Susan I Fitzgerald, Edith Behr, Kendra M. Smith, Moody’s, Sector Comment, March 29, 2018
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