S&P Global Ratings on Tuesday issued a negative 2026 sector outlook for U.S. nonprofit colleges, saying institutions will face mounting operating pressure and rising closure risk. Analysts flagged federal policy shifts, enrollment competition, rising costs and new revenue-sharing deals with athletes as key headwinds. S&P singled out small, regional private colleges as especially vulnerable while noting that many large research universities retain robust liquidity. The rating action follows similar warnings from Moody’s and amplifies lenders’ and boards’ pressure on campuses to accelerate budget cuts, program consolidations and strategic realignment.