US EditionFactbox-How Trump’s Tax Cuts Affect Federal Student Aid
UNITED STATES, JUL 7 – The new tax raises the endowment investment tax rate to 8%, exempting smaller colleges with fewer than 3,000 students, and is projected to generate an additional $761 million over 10 years.
- On July 3, 2025, President Donald Trump signed a tax-and-spending package increasing endowment taxes on the nation's top colleges to a multi-tiered rate up to 8%.
- The law introduces this tax hike due to concerns about fiscal challenges faced by both public and private institutions amid other funding cuts and enrollment restrictions.
- At least 11 universities will pay taxes at 4% or 8%, while five will pay 1.4%, and Yale is expected to pay about $280 million the first year under the new rates.
- Experts note college tuition has surged 5.6% annually since 1983, and institutions are raising prices, with Levine stating that 5% or 6% tuition increases "don't seem out of line."
- The tax increase could reduce financial aid availability and cause tuition hikes, worsening colleges' precarious finances and affecting low-income students who rely on grants like Pell Grants.
13 Articles
13 Articles
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...
How Republicans’ Endowment Tax Will Hurt Higher Education
Owen Dahlkamp As the Trump administration escalates its campaign to reshape education, a provision in the “Big Beautiful Bill” will raise the tax on select private colleges’ endowments. The post How Republicans’ Endowment Tax Will Hurt Higher Education appeared first on The Nation.
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