The Illinois Institute of Technology, a Chicago-based STEM university, plans to borrow up to $200 million from its endowment by fiscal 2028 due to a sharp decline in international student enrollment. The move, unusual for higher education, reflects severe fiscal strain as new Trump-era immigration policies make visa acquisition difficult. S&P Global Ratings downgraded the school’s credit rating to BB with a negative outlook, citing the heavy reliance on overseas students, who comprised 50% of total enrollment in fall 2024.
Graduate enrollment dropped 28% in fall 2025, and a 16% decline in total enrollment is projected for fall 2026. The university aims to use endowment loans to cover operating costs while restructuring, with up to $198 million planned for fiscal 2026–2028. Illinois Tech may repay the loans after 2028 if budget performance improves or donor contributions increase.
Despite financial pressure, the institution continues seeking expansion in India and carries nearly $300 million in outstanding municipal bonds. The situation highlights growing risks for universities dependent on international student revenue amid shifting U.S. immigration policies.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing