US EditionFactbox-How Trump’s Tax Cuts Affect Federal Student Aid
UNITED STATES, JUL 7 – The new law raises the excise tax on endowment earnings from 1.4% to up to 8% for elite private colleges, expected to generate $761 million over 10 years, starting in 2026.
- On Independence Day, President Donald Trump signed the 'One Big Beautiful Bill,' which increases college endowment excise taxes to 8% starting in 2026.
- House Republicans initiated a GOP effort targeting wealthy 'woke' university endowments, boosting the federal excise tax from 1.4% to as high as 21% for institutions with over $2 million per student, aiming to address revenue shortfalls.
- The Joint Committee on Taxation estimates top five endowments face an 8% tax, generating $761 million over 10 years, with Yale owing about $280 million in year one.
- Many colleges face tuition hikes or aid cuts, with Harvard warning 37% of revenue from endowment distributions will be constrained.
- Over time, experts warn that tuition hikes are likely, as some colleges' endowment taxes may surpass their entire financial aid budgets.
16 Articles
16 Articles
Trump Admin. Tweaks 90-10 Rule
The change is expected to have a minimal impact on students, but critics worry about the precedent. The Trump administration’s Department of Education recently made a subtle change to Biden-era regulations that were designed to ensure for-profit colleges provide quality programs.
Factbox-How Trump’s tax cuts affect federal student aid
(Reuters) -U.S. President Donald Trump’s new tax and spending measures, which he signed into law on Friday, will hit some students in their pocketbooks when it comes to federal financial aid. The law will affect the amount that students and their families can borrow, as well as eligibility for Pell Grants, designed to help low-income undergraduate students. It will also put colleges and universities on the hook if their students fail to earn mor…
NBC Chicago
NBC PhiladelphiaHere's what the endowment tax in Trump's ‘big beautiful bill' may mean for your college tuition
President Donald Trump’s megabill raises the tax on some college endowments, which experts say could cause schools to hike tuition, cut financial aid or...
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