Fitch Ratings issued a “deteriorating” outlook for the higher education sector in 2026, citing a shrinking pool of prospective students, rising costs, and growing uncertainty over state and federal support. The agency pointed to new federal limits on graduate lending, expected declines in international enrollment, and continued expense escalation as drivers of fiscal stress for tuition-dependent institutions. The report singled out uneven effects across the sector: two‑year colleges have regained pandemic losses while many four‑year, nonprofit institutions face steeper risk. Fitch joined Moody’s and S&P in flagging a difficult year ahead, warning institutions that rely heavily on full‑tuition international students or on federal research and grant flows to shore up budgets will face acute pressure.