Strong headwinds face the higher education sector in 2026, said Fitch Ratings Senior Director Emily Wadhwani. Fitch RatingsKentucky-based Campbellsville University breached its debt service covenants and hired a financial consultant to advise it. The school owes $2.37 million in debt service this fiscal year and $2.46 million of it in the next fiscal year. In 2025 the higher education sector was tied with four other sectors for 5th for the most bond defaults, among 32 sectors, according to Default Trends. Both Moody's Ratings and Fitch Ratings have negative outlooks on the nonprofit higher education sector in 2026.