Fitch Ratings on Thursday flagged a sharper financial strain for U.S. colleges in 2026, warning of a “deteriorating” credit environment for public higher education. The agency pointed to a shrinking pool of traditional‑age students, uncertain state and federal support, rising operating costs and expected drops in international enrollment as the primary drivers. Fitch singled out new federal limits on graduate lending and potential cuts to research funding as specific policy risks that will compress revenue for tuition‑dependent institutions. Credit pressure will be uneven: community colleges and smaller public institutions that rely heavily on tuition and state funding are most exposed, while elite private schools with large endowments may be insulated in the short term.