The Higher Education Price Index rose 3.6% in fiscal 2025, outpacing consumer inflation and prolonging elevated cost pressure for colleges and universities. HEPI flagged administrative and faculty salary growth—4.8% and 4.3% respectively—as principal contributors, with two‑year public colleges seeing the largest overall increases. Institutions report that sustained HEPI inflation squeezes operating margins, forces program cuts or tuition adjustments, and complicates financial planning amid weak enrollment trends. Credit agencies have cited persistent HEPI gains in gloomy sector outlooks for 2026. CFOs and trustees are weighing operational reforms, targeted investments in digital platforms to lower per‑student costs, and revisiting compensation strategies as part of multi‑year financial stabilization plans.