Higher Education Whining

The OBBB had a number of changes in higher education funding.  7/4/25 Inside Higher Education gives a version that certainly sounds the alarm for the greedy institutions:

"But the legislation doesn’t include some of the proposals that most worried college leaders, such as cuts to the Pell Grant program and a 21 percent endowment tax rate. Wealthy private colleges will still face a higher tax rate on their endowments, up to 8 percent. (The current rate is 1.4 percent.)...

"Eliminating Grad PLUS loans could mean fewer students attend graduate school, which would be a hit to universities’ bottom lines, especially at institutions that rely heavily on graduate programs for tuition revenue. Similarly, capping Parent PLUS loans at $65,000 per student could hurt Black and Latino families, who disproportionately use the loans. The legislation also consolidates repayment plans, giving future borrowers two options. Consumer protection advocates worry the bill will exacerbate the student debt crisis and drive students to private loans."

Is it really "hurting" families who take out student loans to get their kids degrees for which there are either no jobs,  or only poorly paid jobs?

"

Bill Codifies New Endowment Tax Rates

Private colleges with fewer than 3,000 students are exempted from the tax, up from the current floor of 500.

Table with 2 columns and 4 rows. (column headers with buttons are sortable)

$500,000 to $750,000	1.4%
$750K to $1.25M	4.0%
$1.25M to $2M	4.0%
More than $2M Yes, if you have $2 million per student endowment,  you are a hedge fund that dabbles in education. "One of the major changes ties colleges’ access to federal student loans to students’ earnings. Programs that fail to show their graduates earn more than an adult with only a high school diploma could be cut off from loans. One rough analysis found that fewer than half of two-year degree programs would pass the earnings test, but community colleges are less reliant on loans." Yes, if a degree in Victim Studies only generates the same income as not going to college, it is arguable that whatever the benefits of such a degree are to an individual or the society as a whole,  it probably does not justify federal assistance.   If it really makes you feel better, pay for it yourself.	8.0%"