The return of Donald Trump to the White House after his victory in the 2024 Presidential election has altered nearly every aspect of American policy, and the world of higher education is in no way immune from these changes. Trump’s public fights with the Ivy League and other elite colleges have taken most of the media attention, but colleges across the nation have experienced their own share of changes, as have the students attending them.
Admissions, Affirmative Action and International Students
Since his inauguration earlier this year, Trump has focused heavily on reforming a college system that his administration argues is financially bloated and biased against white applicants. Much of the administration’s reforms have focused on eliminating diversity, equity, and inclusion (DEI) programs, particularly surrounding affirmative action, which was ruled unconstitutional by the Supreme Court in 2023.
The administration argues that colleges have continued to apply affirmative action, primarily through proxy measures such as personal statements, in making acceptance decisions, and Trump has released a barrage of executive orders on that subject. Last month Trump signed a new order that forces colleges to share data about their applicant pools and acceptances, giving the Department of Education power to investigate these alleged proxies.
The Department of Education, meanwhile, had threatened to cut federal funding to institutions that it claims engaged in race-based decision making, though these threats have been caught up in court. These latest orders follow an immediate effort within the opening days of the second Trump presidency to eliminate DEI resources and initiatives from the Department of Education’s website, as well as directing the various branches of government to identify and investigate colleges, corporations and foundations with DEI initiatives.
The administration has also attempted to restrict international students, both in the numbers that can be admitted and in the length of time they can remain. Trump’s attacks against international students have so far targeted individual schools, such as his suspension of visas for students studying at Harvard or his requirement that Columbia “decrease financial dependence on international student enrollment”. However, the administration has begun to move from changing the rules for individual schools to changing the rules for all international students.
One recent memo from the Department of Homeland Security proposes to restrict student visas to a duration of four years. At present, student visas have “duration of status,” which permits students to remain in the country while they continue to make progress towards a degree. Critics argue that restricting student visas to a four-year term will prevent international students from completing a bachelor’s degree program if they require time beyond the standard 4-year plan and will limit their ability to participate in doctoral programs that frequently last five years or more.
Student Loan Changes
While the Trump administration’s policy has influenced admissions policy and diversity initiatives across higher education, changes to student loans and financial aid will most directly impact students. The One Big Beautiful Bill Act (OBBBA) has implemented a series of restrictions on federal borrowing. Parent PLUS loans, which typically helped cover the gap between student loan limits and the rising cost of college, have been capped, maxing out at $20,000 annually and $65,000 total per student. When combined with the $7,500 annual limit for undergraduate federal loans, that limits families to $27,500 per year in federal loans. With the average annual cost of undergraduate education reaching $38,270, these federal loan caps will leave students with, on average, over 10 thousand dollars still to cover, either out of their own pockets, through scholarships or through the private loan market.
For those seeking a graduate education, the OBBBA has eliminated Graduate PLUS loans and added additional caps to federal borrowing. Graduate students are now only permitted to take out a maximum of $20,500 per year, while professional students (those in medical school, law school, and other similar programs providing training for a specific job) can take out a maximum of $50,000 per year. With the average annual tuition cost of medical school at $59,605 and the average tuition cost of a masters’ degree being $62,820 over two years, graduate students will likewise need to find approximately ten thousand dollars in additional funding to cover the cost of their degrees.
The OBBBA has also reduced the variety of loan repayment options. Previously, federal loans provided multiple income-driven repayment options to help lower-income students pay back their loans, and President Biden expanded that list by signing the Saving on a Valuable Education (SAVE) plan into law last year. However, the OBBBA replaces these plans with the new Repayment Assistance Plan (RAP), which now becomes the only alternative to a standard fixed-payment plan.
The RAP has a minimum monthly payment of $10 (SAVE had no minimum monthly payment), has a term length of 30 years (SAVE had a 20-year term, or 25 years for graduate loans) and begins counting its income percentage immediately (SAVE ignored the first $35,000 of income). This collectively means that a borrower making $40,000 annually would see their monthly payment increase from $40 under the SAVE plan to $132 under the new plan. RAP does, however, provide substantial discounts for those with dependent children, and is generally a less expensive plan for those with higher incomes.
In short, the OBBBA has reduced both the scale of federal loans and the variety of repayment plans that exist for both undergraduate and graduate education. In the immediate future, more students will have to seek alternate sources of funding, whether those be private loans or additional external financial aid/scholarships. The decline in international students, who typically pay higher tuition prices, will make the scholarship budgets even tighter at many institutions. It’s unclear just how many students will be forced to reconsider their educational plans because of these changes, but the tradeoffs of higher education will certainly become more relevant than ever in the coming years.