It looks like a regional phenomenon - countries near to Israel have a similar fertility rate.
see (Middle East fertility rates) https://data.worldbank.org/indicator/SP.DYN.TFRT.IN?location...
and (OECD fertility rates)
https://www.oecd.org/en/data/indicators/fertility-rates.html
University students are predominantly female in Israel as in North America, so female education isn't a differentiator for fertility rate.
I recall reading an article about the culture of Israel is friendlier towards families/young children. Not sure how that cultural aspect would show up in stats.