""deteriorating credit environment for U.S. Public Finance Higher Education in 2026 relative to 2025.""
"The organization noted state funding is "vulnerable" due to an "uncertain policy trajectory" that will "generally shift more costs previously borne by the federal government on to the states.""
""Our sector view is negative, as we expect colleges and universities will struggle to navigate through mounting operating pressures and uncertainty that will require budgetary and programmatic adjustments," officials at S&P Global Ratings noted on their website."
"That outlook is based on various pressures, including concerns about declining enrollment, new limits on federal loan programs and obstacles for international students seeking to study in the U.S."
Fitch, S&P Global Ratings, and Moody's issued negative sector outlooks for U.S. higher education for 2026, forecasting a deteriorating credit environment. Key pressures include declining enrollment, new limits on federal loan programs, obstacles for international students, and rising operating costs. State funding appears vulnerable amid an uncertain policy trajectory that may shift federal costs onto states. Public concerns about the value proposition of degrees, falling job-placement rates, and affordability constrain revenue growth. Ratings agencies anticipate consolidation through mergers, closures, and restructurings as institutions adjust budgets and programs.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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