Fitch Reports ‘Deteriorating’ Outlook for Higher Ed

The higher education sector is expected to face “a deteriorating credit environment,” according to a 2025 outlook report from Fitch Ratings, a major credit ratings provider. The report noted that rising pressures, including “uneven” enrollment trends, growing costs and flat state funding, are likely to financially hurt U.S. higher ed institutions—especially those with already tight budgets that heavily depend on tuition dollars. Fitch predicted modest net tuition growth, between 2 percent and 4 percent, for most colleges and universities.