S&P Global Ratings reported that margins worsened for both public and private colleges despite enrollment gains in fiscal 2025. The rating agency cited median operating margin declines among private nonprofit institutions and a smaller improvement—but continued margin pressure—among public colleges. S&P found that tuition discounting increased for private institutions as competition for students intensified, while public institutions’ margin outcomes varied by institution type and demand strength. Large flags and well-resourced colleges remained better positioned, while smaller and more regional public colleges faced greater risk due to weaker demand and less financial flexibility. The rating update also flagged likely near-term challenges for private colleges, with federal policy shifts such as new student loan restrictions adding to the uncertainty for enrollment and revenue planning.