Recession in the country has prevented many private and public universities from hiking their net tuition due to fewer enrollments, says a study conducted by Moody's, an investors service.
Around one-third of the colleges will not be able to generate enough profits as they are expecting stagnant tuition rates.
"In addition to these economic pressures, tougher governmental scrutiny of higher education costs and disclosure practices is adding regulatory and political pressure to prevent tuition and revenue from rising at past rates," Moody's Analyst Emily Schwarz, lead author of the report on the survey said.
Due to a weak economy, the students are either preferring affordable community colleges, studying part time or abandoning their college studies itself.
The study said that 33 percent of private universities and 32 percent of public universities predict either a decline in their revenues or growth below a 2 percent rate.
"The cumulative effects of years of depressed family income and net worth, as well as uncertain job prospects for many recent graduates, are combining to soften student market demand at current tuition prices," Schwarz, said.
Smaller tuition dependent private universities predict a 2.6 percent increase in net tuition fee per student, while public universities expect a slightly higher increase to 2.7 percent from fiscal year 2012 to 2013.
In order to enroll in some of the best programs offered by the universities, student aids and federal loans are necessary.
In the year 2012, around 40 percent students from public universities depended on loans, whereas private universities recorded around 21 percent.
But, experts in the study estimate that if the government restricts student aid and loan programs, the universities might experience further revenue pressures.
