S&P: Negative outlook for nonprofit colleges in 2026
Ben Unglesbee
December 3, 2025
The credit ratings agency — the second to forecast a poor outlook for the sector in the year ahead — pointed to federal policy shifts, rising costs and competition over students.
Dive Brief:
S&P Global Ratings on Tuesday issued a negative 2026 outlook for U.S. nonprofit colleges, with analysts writing that institutions “will struggle to navigate through mounting operating pressures and uncertainty that will require budgetary and programmatic adjustments.”
The credit ratings agency pointed to federal policy changes, competition over enrollment, rising costs and financial disruption from new revenue-sharing arrangements with college athletes.
S&P analysts expect weak operating margins at nonprofit colleges as they balance rising costs with revenue pressures. Institutions will continue shutter at higher rates than usual in 2026 as they come under mounting financial struggles, with small, regional private colleges especially vulnerable, the analysts wrote.
