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Federal policy challenges and a dwindling population of traditional-age students will make for a difficult year ahead for higher education, Moody’s Ratings predicted in a report issued last week.

The credit ratings agency predicted that revenue growth will trail behind previous years while expense growth will put a squeeze on operating margins, though strong investment returns should help buoy institutions’ financial position. Moody’s noted that federal policy challenges are also expected to “cause operational and governance stress” as the Trump administration continues to cut federal research funding and seeks to limit the number of international s

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