Could many US colleges face a credit crunch as coronavirus continues to spread?
S&P Global Ratings, which assesses the creditworthiness of borrowers, lowered ratings at the end of April for dozens of colleges and universities across the U.S. Lost revenue from international students stranded by travel restrictions, cancelled athletic events and other changes is already considerable. An April survey of students found widespread skepticism about the value of remote learning. Continuing disruption in the fall would lead to "even greater pressures," S&P said.
The California State University system was first to suspend most in-person instruction for the fall term. As the virus continues to spread around the country, plans by other schools to reopen are hedged with uncertainty. The University of Virginia is expecting classes to start on campus on August 25, "assuming federal and state guidelines permit."
