Moody’s Investors Service projected a negative outlook for the higher-education sector, citing a mix of federal policy risks, rising operating costs and the loss of grant funding. The credit agency warned that these pressures could squeeze margins, strain endowments, and put borrowing costs upward for colleges already facing enrollment headwinds and tuition sensitivity. Moody’s analysis highlights regulatory shifts and reduced federal support as near-term downside risks, while noting long-term demographic shifts that may lower demand for some programs. For trustees and CFOs, the notice signals heightened scrutiny for capital projects, liquidity plans and contingency budgeting. Rating downgrades or negative outlooks can raise interest expense and constrain strategic moves including campus construction, merger talks, or long-range academic investments.