Higher education faces ‘deteriorating’ 2026 outlook, Fitch says
Laura Spitalniak
December 5, 2025
A shrinking pipeline of students, uncertainty about state and federal support, and rising expenses could all hurt college finances, according to analysts.
Dive Brief:
Fitch Ratings on Thursday issued a “deteriorating” outlook for the higher education sector in 2026, continuing the gloomy prediction the agency issued for 2025.
Analysts based their forecast on a shrinking prospective student base, “rising uncertainty related to state and federal support, continued expense escalation and shifting economic conditions.”
With its report, Fitch joins Moody’s Ratings and S&P Global Ratings in predicting a grim year for higher ed — Moody’s for the sector overall and S&P for nonprofit colleges specifically.
