Credit markets and private-college budgets are showing growing stress, even as revenues held up in fiscal 2025. Fitch Ratings reported that private nonprofits generated higher net tuition revenue than in the prior year, buoyed by investment returns and fundraising, but rising costs, demographic shifts, and an “adversarial federal policy environment” continued to strain weaker institutions. The report highlights a widening divide: the most resilient schools drew on multiple revenue streams while less financially flexible colleges remained heavily tuition dependent. Fitch also warned that tuition discounting reached another record high, with the median discount rate above 40%, and flagged reduced capital spending for construction and deferred maintenance. For trustees and finance officers, the message is operational: the sector may preserve cash in the near term by delaying capital projects, but long-term debt pressure and margin deterioration remain key risks—especially for colleges without broad-based funding.