Moody’s issued a negative outlook for the U.S. higher-education sector in fiscal 2026, citing enrollment pressures, rising expenses, demographic declines and policy headwinds from the federal government. The ratings agency pointed to federal policy changes—including proposed research cuts, tighter visa rules and restructuring at the Education Department—that compound financial risks for many institutions. Analysts singled out graduate-program vulnerabilities tied to proposed caps on Grad PLUS loans and limits on student borrowing; institutions with large master’s portfolios could face acute demand and revenue shocks. Demographic trends—projected declines in high-school graduates—add enrollment risk. Moody’s guidance signals potential for credit stress and places renewed emphasis on boards and CFOs to adjust liquidity, enrollment strategies and contingency planning ahead of 2026.