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The schools were dependent on tuition, and failed to attract enough students.
Universities, finding themselves more dependent on tuition, may feel the need to compete for students.
But Moody's issued a negative outlook for a majority of colleges and universities heavily dependent on tuition and state revenue.
Part of the problem, said Alan Brinkley, Columbia's provost, is that the School of the Arts is heavily dependent on tuition.
Some small colleges, dependent on tuition because of small or nonexistent endowments, have closed as students have chosen cheaper public institutions.
That is significant given N.Y.U.'s relatively small per-student endowment, which makes the university more dependent on tuition checks than other institutions in its academic league.
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In Britain, funding for teaching has become more dependent on student tuition, as direct government support decreased, causing a chilling effect elsewhere.
Like all stand-alone institutions, N.Y.L.S. is even more dependent on student tuition than those attached to universities, and Moody's highlighted this fact in its 2006 appraisal of the school's bonds.
Education is one of Australia's largest exports, with many universities dependent on international students' tuition fees.
"How can we tell ourselves that all students stand an equal chance of moving up the social ladder when success in our education system is highly dependent on the extra tuition and enrichment lessons that wealthier parents can afford and poorer parents cannot?" read the letter, by Wily Wan.
While a few have endowment support to move beyond their reliance on tuition, most are heavily tuition-dependent.
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CEO of Professional Science Editing for Scientists @ prosciediting.com