A new study by Daniel Greenstein, a former state system leader, analyzes the financial vulnerabilities of many U.S. colleges prior to the implementation of President Trump’s new federal loan limits and earnings tests. The report highlights how these institutions were already on shaky ground, predicting widespread impacts once the policies take effect. Published in Inside Higher Ed, the article warns that ‘everyone’s going to experience a shock’ from these looming changes.
Key Points
- Study reveals many colleges faced financial instability before new policies.
- Trump’s loan limits and earnings tests expected to exacerbate challenges.
- Former leader Daniel Greenstein assesses risks to higher education institutions.
Implications for Educational Freedom
These new federal policies represent potential government overreach in higher education, which could limit institutional freedom and parental choices in funding options like loans. This may indirectly affect educational freedom by restricting access to diverse higher education pathways, emphasizing the need for policies that empower families over centralized control.
Source: ‘Everyone’s Going to Experience a Shock’ From New Federal Policies
