Higher education faces ‘deteriorating’ 2026 outlook, Fitch says — from highereddive.com by Laura Spitalniak
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.

Yale expects layoffs as leaders brace for $300M in endowment taxes — from highereddive.com by Ben Unglesbee
The Ivy League institution’s tax bill starting next year will be higher than what it spends on student aid, university officials said.

Dive Brief:

  • Yale University is bracing for layoffs as it prepares to pay the government hundreds of millions of dollars in endowment income taxes.
  • In a public message, senior leaders at the Ivy League institution said that Yale’s schools plan to take steps such as delaying hiring and reducing travel spending to save money. But they warned workforce cuts were on the horizon.
  • “Layoffs may be necessary” in some units where cutting open positions and other reductions are insufficient, the university officials said. They expect to complete any downsizing by the end of 2026 barring “additional significant financial changes.”

Education Department adds ‘lower earnings’ warning to FAFSA — from highereddive.com by Natalie Schwartz
The agency will warn students when they’ve indicated interest in a college whose graduates have relatively low incomes.

The U.S. Department of Education has launched a new disclosure feature that warns students who fill out the Free Application for Federal Student Aid if they’re interested in colleges whose graduates have relatively low earnings, the agency said Monday. 

“Families deserve a clearer picture of how postsecondary education connects to real-world earnings, and this new indicator will provide that transparency,” U.S. Education Secretary Linda McMahon said in a Monday statement. “Not only will this new FAFSA feature make public earnings data more accessible, but it will empower prospective students to make data-driven decisions before they are saddled with debt.”

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