Why has Howard University's credit outlook been lowered?

Howard University's credit outlook was revised to negative by Fitch Ratings due to financial pressures stemming from increased expenses due to past growth and a recent enrollment dip.

What impact has the enrollment drop had on Howard University?

The 5% enrollment drop in fall 2025 reduced Howard University's tuition and fee revenue by $1 million, contributing to current financial pressures.

Is Howard University in stable financial health?

Yes, Howard University maintains a strong financial foundation with a BBB credit rating and its leadership expects improvements over the next couple of years.

Home / Education / Howard University Faces Financial Headwinds Amidst Growth

Howard University Faces Financial Headwinds Amidst Growth

5 Feb

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Summary

Howard University's credit outlook was lowered to negative due to financial pressures.
Enrollment dropped 5% in fall 2025, impacting tuition revenue.
Leadership is confident in Howard's strong financial foundation and future improvements.

Howard University Faces Financial Headwinds Amidst Growth

Howard University is currently navigating financial pressures that have led Fitch Ratings to revise its credit outlook to negative. This situation arises after a period of significant growth in applicants and class sizes, which increased operational expenses for the university.

Enrollment saw a 5% decrease in fall 2025 compared to the previous year, resulting in a $1 million reduction in tuition and fee revenue. Fitch analysts noted that while the university has robust tools to manage this "temporary operating pressure," execution challenges in right-sizing operations are present.

Despite the current headwinds, Howard University retains a strong financial foundation, evidenced by its BBB credit rating. The university's leadership is focused on cost containment, efficiency, and research expansion, expressing confidence in strengthening its financial position and expecting improvements within the next couple of years.