Fitch, Moody’s and S&P Global have issued dour outlooks for higher education in 2026, warning of deteriorating finances and mounting operating pressures across non-profit institutions. Analysts cited enrollment declines, demographic headwinds, uncertainties tied to federal policy changes and pressure on international student flows as key drivers of credit risk. The agencies expect more institutions to tighten budgets, cut staff and consider consolidations if revenue shortfalls persist. Finance officers and board members should anticipate increased market scrutiny, potential rating downgrades and a higher cost of capital that could affect capital projects, refinancing plans and long-term strategic choices.