Three major rating agencies—Fitch, S&P Global and Moody’s—issued negative outlooks for U.S. higher education credit in 2026, citing declining enrollment, caps on federal loan programs, visa and international‑student uncertainty, rising operating costs, and policy volatility. Fitch warned of a deteriorating credit environment for public‑finance higher education and flagged the sector’s vulnerability to state funding shifts. Analysts said the combination of weak revenue growth, intense competition for students, and higher labor and infrastructure costs will likely drive consolidation through mergers, closures, and restructurings. Agencies expect institutions with narrow margins or heavy reliance on tuition and state appropriations to face the most pressure. The negative outlooks raise borrowing costs and complicate capital plans for campus renovations, data‑center hookups and academic facilities—forcing many presidents and finance chiefs to re‑prioritize projects, rethink bond issuance timing, and accelerate cost‑containment strategies.