A declining body of first-year students, uncertain international enrollment and high costs are weighing on many institutions, the ratings agency said. In a Tuesday report, the credit rating agency said “uneven enrollment dynamics, rising competitive pressures and continuing margin pressures will challenge credit factors across the sector.” Added to those challenges are flat public funding, elevated wage costs, constraints on revenues and rising capital spending needs. Those challenges “will continue to chip away at more vulnerable higher education institutions in 2025,” and that’s even if inflation eases and interest rates come down, Fitch Senior Director Emily Wadhwani said in the report.
