Fitch Ratings on Thursday issued a “deteriorating” outlook for US higher education in 2026, warning of a shrinking prospective student base, rising expense pressures and uncertain state and federal support. The agency cited new federal graduate lending limits, weaker international enrollment and continued expense escalation as drivers that will press margins next year. Fitch joined Moody’s and S&P in downgrading sentiment for the sector, creating a rare consensus among rating agencies that financial stress will be uneven but widespread. Analysts singled out institutions that rely heavily on tuition and international students as most vulnerable. The report notes that two-year colleges recovered enrollment after the pandemic while many four‑year institutions have not, leaving an uneven revenue rebound that will complicate budgeting and capital plans. For CFOs and trustees, Fitch’s outlook signals an urgent need to recalibrate enrollment assumptions, contingency plans and operating models ahead of 2026.