The three major credit-rating agencies signalled a deteriorating financial outlook for U.S. higher education, warning of mounting operating pressures from demographic shifts, policy uncertainty and falling international enrollment. Moody’s, S&P and Fitch all flagged heightened downside risk for nonprofit colleges heading into 2026. That federal stress is mirrored at the state level: South Carolina public institutions requested roughly $2.3 billion in additional state aid for the coming fiscal year, including high-cost technical investments — from an unmanned underwater research vehicle to a defense-oriented institute — underscoring institutions’ reliance on state support to stabilize operations and preserve research and workforce programs.