Three major credit-rating agencies issued negative outlooks for higher education's finances, warning of deteriorating credit conditions and consolidation in 2026. Fitch said it expects a worsening credit environment for U.S. public higher education, citing enrollment declines, new federal loan limits and vulnerable state funding; S&P Global similarly flagged mounting operating pressures, and Moody’s had already set a negative sector view. Analysts said institutions—especially small regional and tuition-dependent colleges—will face tough trade-offs around budgets, program cuts and potential mergers if revenue pressures continue.