How Will Colleges Fare Financially in 2025? It Depends.

S&P Global Ratings and Moody’s Ratings last week issued their respective forecasts for higher education in 2025, both pointing to financial opportunities for some and continued challenges for others. S&P for the third year issued a split outlook for the nonprofit higher ed sector. The 2025 outlook is negative for what analysts called “highly regional, less-selective institutions that lack financial flexibility” but positive for larger colleges with broad reach, steady demand and ample resources. Meanwhile, Moody’s again gave the higher education sector a stable outlook as “revenue and expense paths converge.”