Since Donald Trump started his second term, the federal government has made so many changes that it can be hard to keep track of all of them. But for families with children in college or who will soon be going to college, changes that affect higher education may be of particular concern.
Trump has already passed numerous executive orders that impact colleges and universities. Even before he took office, there was considerable chatter around the notion that he would try to dismantle the Department of Education (DOE). While he hasn’t yet done that, the media, colleges, and people and organizations that work with college-bound students have started to speculate about what the department’s elimination will mean.
While I won’t attempt to cover all of the possible changes, I will do my best to address some of the most pertinent issues, based on what I’ve learned from news reports and webinars.
Federal Funding
Trump has threatened to pull federal funding from colleges, which will affect private institutions as well as public ones. Additionally, federal guidance and executive orders apply to both public and private institutions, and any school that receives federal financial aid has to comply with certain laws.
Diversity, Equity, and Inclusion (DEI)
Many of the actions Trump has taken have to do with DEI on college campuses. In February, the DOE sent a “Dear Colleague” letter to all public and private colleges in the U.S. with broad guidance around DEI. In response, many colleges started removing DEI-related language from their websites and closing or renaming DEI offices. For example, the University of Colorado system changed its DEI Office to the Office of Collaboration. However, the letter stated that interest groups focused on specific cultures or heritages and celebrations of culture and history are not banned if they’re open to all.
Since sending the Dear Colleague letter, the DOE has issued an FAQ that walks back some of what was in the letter. The FAQ stated that federal law prohibits the DOE from controlling curriculum, something that many college professors were concerned about. It also said that using specific terms like DEI is not illegal; what is illegal is treating students differently based on race.
Risks to Certain Programs
As stated above, the federal government cannot dictate curriculum. However, the guidance around DEI could impact specific programs in an indirect way. State legislatures may identify some majors as not meeting workforce needs or not producing enough graduates and may pass legislation to eliminate those majors.
Florida provides an excellent example of how state laws can affect particular programs. In response to a 2023 law, the state removed 50% of courses, many of which cover race, gender, and sexuality issues, from the general education curriculum at its 12 public colleges and universities. Although these courses are still being offered, the fact that students cannot take them to fulfill general education requirements could harm enrollment in certain programs and could threaten the existence of these programs.
Financial Aid
This issue may be of the most concern to students and parents, and there are several potential changes that could impact students and their families. Pell Grants, which are awarded to low-income students, are already facing a shortfall because of how they’re funded. Congress sets the maximum Pell Grant amount each year, and it’s almost certain they won’t increase it. They could decrease it, and/or they could change eligibility requirements to make it harder to qualify for a Pell Grant.
Parent PLUS Loans could be discontinued or made less attractive. If the DOE is disbanded, these loans likely will be turned over to the private market, which could result in competition (read: better interest rates) or collusion (read: worse rates). According to College Aid Pro, a company that helps families reduce college costs, Parent PLUS Loans are the biggest reason college has become so expensive, because they’re available regardless of parents’ employment status or income and have no borrowing limit. If these loans are eliminated or become harder to qualify for, college costs could go down, which would definitely be a silver lining.
Subsidized Federal Direct Student Loans also may be at risk. These loans do not accrue interest while the student is enrolled in college and for six months after they graduate from or leave college. If the government makes them unsubsidized, interest will start to accrue as soon as the loan is initiated.
College Aid Pro is confident that even with all of these changes, colleges will continue to offer discounts, so many families will not pay full price.
In Conclusion
Much of the above is speculation, so we’ll have to wait and see what happens in the coming weeks and months. That said, you are not powerless. Whether you are happy or unhappy, you should contact your representatives – after all, they need their constituents’ support in order to win re-election.
