The next four years will be tumultuous for students and colleges. President-elect Trump is expected to aggressively reorient the federal role in higher education, and his agenda may face little challenge from either Congress or the courts.
The first Trump administration prioritized proprietary colleges’ profits over the interests of defrauded students and reduced protections for vulnerable students. The second Trump administration threatens to go even further, aspiring to eliminate the Department of Education, privatize federal student loans, and police speech on campuses. Other Trump priorities, such as a mass deportation operation and a sweeping regime of tariffs, would also have significant downstream effects on colleges.
How far the incoming administration succeeds in enacting its agenda will determine its impact on educational opportunities for students and families. History suggests that the impact will be especially profound in the areas of consumer protections for students, the federal role in college access, the affordability of student loans, and colleges’ academic freedom. Below, we’ll cover each of these areas in turn.
Rolling Back Protections for Students
The Trump administration is likely to roll back critical protections for students, including a federal rule (the “Gainful Employment” rule) that protects students and taxpayers from investing in low-value career education programs that provide no boost in earnings or that leave students struggling to pay back their debt.
Eliminating the Gainful Employment rule will mean that tens of thousands of students, as well as the federal government, will waste billions of dollars investing in career training programs that provide little or no value to students.
The rule cuts off federal financial aid funding for career training programs that leave graduates with unmanageable debt, or with earnings equal to or worse than the average worker with a high school diploma. The Century Foundation’s analysis found that the Biden administration’s strengthened version of the Gainful Employment rule would raise the annual earnings of the typical financial aid recipient by $3,400 by directing students toward high-value career training programs. For those students who transfer out of programs that fail the rule, annual earnings would increase, on average, by 45 percent, from $21,600 to $31,500—a nearly $10,000 annual boost. Eliminating the Gainful Employment rule will mean that tens of thousands of students, as well as the federal government, will waste billions of dollars investing in career training programs that provide little or no value to students.
The second Trump administration is also likely to roll back a federal rule called the Borrower Defense rule, which ensures that students who were duped by predatory for-profit colleges can access student loan debt relief. As of April 30, the Department of Education has provided $17.2 billion in student debt relief under this rule for nearly a million students who were victims of schools’ illegal conduct. The rule is currently embroiled in a legal challenge brought by a for-profit college trade organization, but if the Trump administration rescinds the rule, thousands of defrauded students will suffer the consequences, including by defaulting on their loans.
Funding Cuts for Higher Education and Widening Gaps in College Access
One of the critical issues at play over the next four years is the Trump administration’s approach to historically Black colleges and universities (HBCUs) and minority-serving institutions (MSIs). The administration’s plans to eliminate the Department of Education entirely and defund essential programs raise legitimate concerns about the future of crucial funding sources like Title III Part B and Title V. These programs are indispensable for the success of HBCUs and Hispanic-serving institutions (HSIs) in particular, as well as the students they serve. With an increasing number of students recognizing the value of an HBCU education, and a growing consensus about these schools’ significant contributions to economic development and workforce development, it is imperative to continue investing in these vital institutions. If programs such as Title III Part B and Title V are not preserved, under-resourced colleges and their students may have to shoulder the difference themselves, and through rising costs to boot.
If programs such as Title III Part B and Title V are not preserved, under-resourced colleges and their students may have to shoulder the difference themselves, and through rising costs to boot.
Moreover, there is a pressing need for the Trump administration to prioritize adequately funding the Department of Education and resolving the longstanding funding inequities that HBCUs face. Addressing the disparities in funding HBCUs is essential if they are to continue to offer access to higher education and make notable economic contributions to this country. Historically, the Office for Civil Rights has played a pivotal role in ensuring that funding inequities were addressed head-on. The Trump administration must ensure fairness by fulfilling its responsibility to tackle these funding inequities and ensure that our educational institutions that serve minoritized communities receive the support they deserve. Unfortunately, the Trump campaign’s anti-D.E.I. rhetoric indicates that the administration will likely oppose, not support, the closing of historical gaps.
Without the SAVE Plan, Rising Student Loan Defaults Would Wreck Borrowers’ Finances
In all likelihood, the Trump administration will roll back the protections for student loan borrowers introduced by the Biden–Harris administration, including the Saving on a Valuable Education (SAVE) Plan. This loss will put enormous strain on families’ budgets because student loans will consume a greater share of their income, pushing some borrowers into default in the process.
Before the pandemic initiated the repayment pause in March 2020, roughly 8 million student loan borrowers were in default with federally managed loans. Under President Biden, they received a long reprieve. For as long as it could, the Biden administration shielded defaulted borrowers from the harshest consequences of default: garnishment of wages, garnishment of federal income such as Social Security and tax refunds, and negative credit reporting. That shield, meant to help borrowers get back on their feet after the pandemic, was not designed to last forever. To ease their return to repayment, the Biden administration concurrently created the SAVE Plan, which has offered a pathway to lower monthly payments for 20 million borrowers—as low as $0 for those with low wages, with interest waived in months when the borrower paid their obligation—and a path to forgiveness in as little as ten years.
By eliminating the SAVE Plan outright or letting the federal courts do so themselves, the Trump administration would create cascading harm for low- and middle-income borrowers. More borrowers would struggle to meet their monthly payments, and many will default. For the first time in nearly five years, millions of defaulted borrowers will then experience brutal financial consequences.
Moreover, if the Trump administration puts Project 2025’s priorities for student borrowers into place, then the repayment plan that replaces SAVE would have no timeline to forgiveness and let interest capitalize once again, making unrepayable student loan debt functionally impossible to overcome.
Academic Freedom under Threat
With his hand on the country’s largest spigot of funding for higher education, President-elect Trump is poised to cripple the autonomy that has made American higher education the best in the world. He has praised leaders, like Viktor Orbán of Hungary, who have demanded patriotic fealty from the country’s higher education institutions.
Some might find it unthinkable that such measures would be taken by a U.S. president. But Trump has not only threatened as much: with a hand-picked conservative majority in the Supreme Court, there is also no way of stopping him. He has already said he will use civil rights laws to punish colleges that haven’t handled campus protests the way he would have liked. Following through on that threat is a simple matter of stopping the flow of money from the federal government. Yes, colleges will sue, and some courts may say that Trump overstepped. But most colleges will comply because of the legal risks and costs, and will do whatever they think they need to do to continue operating at all. Those that do seek protection from the courts may find themselves arguing in front of a judge committed to supporting Trump’s wishes.
Private accrediting agencies, which have traditionally been the buffer preventing federal intrusion into academic matters, are powerless against a president who has no respect for the traditional independence of higher education. The incoming president can simply yank the recognition of agencies that, for example, expect colleges to make efforts to promote campus diversity, or to provide women with access to contraception. Then, to satisfy his allies on the militant Christian Right, he can deny recognition to agencies that fail to require the teaching of creationism alongside evolution. Indeed, the prior Trump administration already adopted a regulation that sets up that scenario.
Colleges would do well to start plotting out how they could forego federal aid in order to have a fighting chance of avoiding the damage.
Trump’s demand for loyalty, his penchant for revenge, his embrace of power, and his lack of respect for principles of truth and justice present an unprecedented crisis for higher education. Colleges would do well to start plotting out how they could forego federal aid in order to have a fighting chance of avoiding the damage. If colleges must choose between their freedom of speech and their eligibility to receive federal financial aid, many would become costlier for families, while many others would have to undermine their own educational missions to keep their doors open.
Tags: higher education, Student protections, academic freedom, educational equity
Trump’s Election Poses New Risks to Higher Education
The next four years will be tumultuous for students and colleges. President-elect Trump is expected to aggressively reorient the federal role in higher education, and his agenda may face little challenge from either Congress or the courts.
The first Trump administration prioritized proprietary colleges’ profits over the interests of defrauded students and reduced protections for vulnerable students. The second Trump administration threatens to go even further, aspiring to eliminate the Department of Education, privatize federal student loans, and police speech on campuses. Other Trump priorities, such as a mass deportation operation and a sweeping regime of tariffs, would also have significant downstream effects on colleges.
How far the incoming administration succeeds in enacting its agenda will determine its impact on educational opportunities for students and families. History suggests that the impact will be especially profound in the areas of consumer protections for students, the federal role in college access, the affordability of student loans, and colleges’ academic freedom. Below, we’ll cover each of these areas in turn.
Rolling Back Protections for Students
The Trump administration is likely to roll back critical protections for students, including a federal rule (the “Gainful Employment” rule) that protects students and taxpayers from investing in low-value career education programs that provide no boost in earnings or that leave students struggling to pay back their debt.
The rule cuts off federal financial aid funding for career training programs that leave graduates with unmanageable debt, or with earnings equal to or worse than the average worker with a high school diploma. The Century Foundation’s analysis found that the Biden administration’s strengthened version of the Gainful Employment rule would raise the annual earnings of the typical financial aid recipient by $3,400 by directing students toward high-value career training programs. For those students who transfer out of programs that fail the rule, annual earnings would increase, on average, by 45 percent, from $21,600 to $31,500—a nearly $10,000 annual boost. Eliminating the Gainful Employment rule will mean that tens of thousands of students, as well as the federal government, will waste billions of dollars investing in career training programs that provide little or no value to students.
The second Trump administration is also likely to roll back a federal rule called the Borrower Defense rule, which ensures that students who were duped by predatory for-profit colleges can access student loan debt relief. As of April 30, the Department of Education has provided $17.2 billion in student debt relief under this rule for nearly a million students who were victims of schools’ illegal conduct. The rule is currently embroiled in a legal challenge brought by a for-profit college trade organization, but if the Trump administration rescinds the rule, thousands of defrauded students will suffer the consequences, including by defaulting on their loans.
Funding Cuts for Higher Education and Widening Gaps in College Access
One of the critical issues at play over the next four years is the Trump administration’s approach to historically Black colleges and universities (HBCUs) and minority-serving institutions (MSIs). The administration’s plans to eliminate the Department of Education entirely and defund essential programs raise legitimate concerns about the future of crucial funding sources like Title III Part B and Title V. These programs are indispensable for the success of HBCUs and Hispanic-serving institutions (HSIs) in particular, as well as the students they serve. With an increasing number of students recognizing the value of an HBCU education, and a growing consensus about these schools’ significant contributions to economic development and workforce development, it is imperative to continue investing in these vital institutions. If programs such as Title III Part B and Title V are not preserved, under-resourced colleges and their students may have to shoulder the difference themselves, and through rising costs to boot.
Moreover, there is a pressing need for the Trump administration to prioritize adequately funding the Department of Education and resolving the longstanding funding inequities that HBCUs face. Addressing the disparities in funding HBCUs is essential if they are to continue to offer access to higher education and make notable economic contributions to this country. Historically, the Office for Civil Rights has played a pivotal role in ensuring that funding inequities were addressed head-on. The Trump administration must ensure fairness by fulfilling its responsibility to tackle these funding inequities and ensure that our educational institutions that serve minoritized communities receive the support they deserve. Unfortunately, the Trump campaign’s anti-D.E.I. rhetoric indicates that the administration will likely oppose, not support, the closing of historical gaps.
Without the SAVE Plan, Rising Student Loan Defaults Would Wreck Borrowers’ Finances
In all likelihood, the Trump administration will roll back the protections for student loan borrowers introduced by the Biden–Harris administration, including the Saving on a Valuable Education (SAVE) Plan. This loss will put enormous strain on families’ budgets because student loans will consume a greater share of their income, pushing some borrowers into default in the process.
Before the pandemic initiated the repayment pause in March 2020, roughly 8 million student loan borrowers were in default with federally managed loans. Under President Biden, they received a long reprieve. For as long as it could, the Biden administration shielded defaulted borrowers from the harshest consequences of default: garnishment of wages, garnishment of federal income such as Social Security and tax refunds, and negative credit reporting. That shield, meant to help borrowers get back on their feet after the pandemic, was not designed to last forever. To ease their return to repayment, the Biden administration concurrently created the SAVE Plan, which has offered a pathway to lower monthly payments for 20 million borrowers—as low as $0 for those with low wages, with interest waived in months when the borrower paid their obligation—and a path to forgiveness in as little as ten years.
By eliminating the SAVE Plan outright or letting the federal courts do so themselves, the Trump administration would create cascading harm for low- and middle-income borrowers. More borrowers would struggle to meet their monthly payments, and many will default. For the first time in nearly five years, millions of defaulted borrowers will then experience brutal financial consequences.
Moreover, if the Trump administration puts Project 2025’s priorities for student borrowers into place, then the repayment plan that replaces SAVE would have no timeline to forgiveness and let interest capitalize once again, making unrepayable student loan debt functionally impossible to overcome.
Academic Freedom under Threat
With his hand on the country’s largest spigot of funding for higher education, President-elect Trump is poised to cripple the autonomy that has made American higher education the best in the world. He has praised leaders, like Viktor Orbán of Hungary, who have demanded patriotic fealty from the country’s higher education institutions.
Some might find it unthinkable that such measures would be taken by a U.S. president. But Trump has not only threatened as much: with a hand-picked conservative majority in the Supreme Court, there is also no way of stopping him. He has already said he will use civil rights laws to punish colleges that haven’t handled campus protests the way he would have liked. Following through on that threat is a simple matter of stopping the flow of money from the federal government. Yes, colleges will sue, and some courts may say that Trump overstepped. But most colleges will comply because of the legal risks and costs, and will do whatever they think they need to do to continue operating at all. Those that do seek protection from the courts may find themselves arguing in front of a judge committed to supporting Trump’s wishes.
Private accrediting agencies, which have traditionally been the buffer preventing federal intrusion into academic matters, are powerless against a president who has no respect for the traditional independence of higher education. The incoming president can simply yank the recognition of agencies that, for example, expect colleges to make efforts to promote campus diversity, or to provide women with access to contraception. Then, to satisfy his allies on the militant Christian Right, he can deny recognition to agencies that fail to require the teaching of creationism alongside evolution. Indeed, the prior Trump administration already adopted a regulation that sets up that scenario.
Trump’s demand for loyalty, his penchant for revenge, his embrace of power, and his lack of respect for principles of truth and justice present an unprecedented crisis for higher education. Colleges would do well to start plotting out how they could forego federal aid in order to have a fighting chance of avoiding the damage. If colleges must choose between their freedom of speech and their eligibility to receive federal financial aid, many would become costlier for families, while many others would have to undermine their own educational missions to keep their doors open.
Tags: higher education, Student protections, academic freedom, educational equity