Moody’s projected a negative credit outlook for the higher‑education sector, citing federal policy uncertainty, lost grant funding and rising costs that could pressure institutional finances in the year ahead. The rating agency said regulatory changes and frozen federal support present material downside risks for universities’ revenue and liquidity. In the U.K., the Office for Students told MPs that 50 English higher‑education providers face the risk of exiting the market within two to three years, with 24 at more immediate risk of having to stop degree courses within 12 months. Regulators and funders in both countries are pressing institutions to demonstrate fiscal sustainability as enrollment headwinds and policy shifts compress operating margins.