Forvis Mazars, one of the largest public accounting and consulting firms in the United States, today released its 2026 Annual Higher Education Outlook.
Among the key insights: While total postsecondary enrollment increased 3.2% in spring 2025 compared to the previous year, financial uncertainty driven by a looming “demographic cliff,” questions over college’s long-term value, technology disruption, and cultural/political discord all signal significant challenges ahead for colleges and universities.
“Navigating all of the uncertainty in the current landscape will require insights, innovation, and intelligence,” said Rachel Pauletti, leader of the higher education consulting practice at Forvis Mazars. “Educational institutions should work to build the capacity to successfully plan and execute strategies that will address these issues and the others that will arise.”
This year’s Outlook provides an in-depth overview. Reports on the other issues, as well as relevant strategic considerations, will be released periodically throughout 2026, as new opportunities and threats emerge.
Key findings include:
- Financial challenges – The 30-plus-year expansion of the 18-year-old population ready to enter college peaked this year, with a projected 15% decline in college-bound students from 2025 to 2029. That decrease, coupled with increased costs to deliver education, rapidly increasing student debt levels, funding challenges (including federal student financial aid, research funding, and cultural/social penalties being threatened or imposed), are creating the need for disciplined enterprise risk management.
- Eroding value proposition – The American public continues to lose confidence in colleges and universities’ ability to help students attain their life goals. According to a July 2025 report from Gallup and the Lumina Foundation, public confidence in U.S. higher education was at 42% in 2025, significantly lower than the 57% confidence level recorded in 2015. Colleges and universities are also struggling to differentiate themselves to students, donors, and external partners.
- Technological disruption – The rate of tech change appears to be far ahead of some institutions’ desire or ability to adapt. Changes in digital learning, artificial intelligence (AI), communication systems, and the rising need for more specialized interactive learning experiences and skill sets create a host of challenges.
- Cultural/social issues – Characterized by a student mental health crisis and changing political and social expectations for higher ed, this area of disruption may be the most daunting. This includes the federal government’s changing stance on diversity, equity, and inclusion (DEI) initiatives; the U.S. Department of Education’s plans to overhaul regulatory matters; attacks on academic freedom; and moves to cut discretionary funding for research.
“Today’s institutions largely understand they need to have sustainable and relevant academic programs and operations that are valuable for students, parents, and other key stakeholders,” said Nick Wallace, higher education consultant and director at Forvis Mazars, and lead author of the Outlook report. “That’s why it’s critical that they bear in mind these core findings more than ever before, given the crossroads we are facing in higher education.”
The higher education practice at Forvis Mazars serves more than 350 college and university clients across the U.S. and provides more audits to higher ed institutions than any other firm in the country, according to publicly available data.
The 2026 Annual Higher Education Outlook from Forvis Mazars is available for download at forvismazars.us.
In addition, a webinar about the Outlook survey will take place on Tuesday, January 20. The webinar is geared toward college presidents, chief financial officers, provosts, boards, and accounting professionals.
