College students, families, and universities continue to navigate shifting higher ed policies, funding challenges, and campus developments. Here’s a quick look at the most important stories shaping higher education and student personal finances for October 17, 2025.
🎓 Headlines at a Glance
- Brown University rejects Trump’s federal funding “compact” over academic freedom concerns.
- Harvard posts a $113M deficit amid federal funding cuts and rising costs.
- Arthur Blank Foundation pledges $50M in gap scholarships for Atlanta HBCUs.
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1. Brown University Rejects Federal Funding Compact
Brown has formally declined to sign on to the Trump administration’s proposed “Compact for Academic Excellence,” which would tie federal grants to compliance with policies restricting DEI programs and international enrollment. Brown’s president warned that the compact threatens academic freedom and institutional autonomy.
➡️ Impact: Universities resisting the compact may risk losing access to new federal funding streams. Students and faculty at compliant universities could face policy shifts affecting diversity, hiring, and admissions. MIT was the first college to reject the compact last week.
2. Harvard Posts $113 Million Operating Deficit
Harvard reported a $113 million loss in fiscal 2025, its first significant deficit in years. Contributing factors include federal research funding cuts, legal costs related to clashes with the government, and higher operational expenses.
➡️ Impact: The university is implementing hiring freezes, cost reductions, and reassessing its overal financial outlook. Pressure may mount on donor giving, endowment liquidity, and future student aid support.
3. $50M Gift to HBCUs to Cover Student Gaps
The Arthur Blank Family Foundation committed $50 million over 10 years to support “gap scholarships” at historically Black colleges in Atlanta (Clark Atlanta, Morehouse, Spelman, Morris Brown). The funds go to students in academic good standing who are close to graduation but lack resources to finish.
➡️ Impact: This will hopefully help reduce dropout risk for many students nearing degree completion. It also sends a message about private support filling gaps left by public funding cuts.
Bonus: What You Should Know About The Education Compact
The Trump administration’s Compact for Academic Excellence (PDF File) proposes tying federal funding to compliance with certain initiatives. While many of the initiatives seem appropriate on the surface, the underlying conditions may be problematic.
Equality in Admissions and Hiring
Universities receiving federal benefits must adopt race-, sex-, and ideology-neutral admissions and hiring policies. All decisions are to be based on objective, publicly available criteria, with standardized testing required for applicants. Faculty and administrative hiring must also exclude consideration of race, sex, or other protected traits.
Issues: Many colleges have moved to test-optional and want to pick their applicants and staff on a variety of criteria.
Free Expression and Institutional Neutrality
The document requires universities to maintain a “marketplace of ideas,” ensuring academic freedom while prohibiting harassment, discrimination, or ideological dominance. Universities must also remain politically neutral as institutions – departments and employees cannot issue political statements on behalf of the university unless directly related to their academic mission.
Issues: While this appears to be neutral, enforcement may be one-sided. All types of speech should be protected, even if the administration disagrees.
Student Equality and Academic Standards
Universities must apply grading, disciplinary, and access policies equally to all students. Grades must reflect actual academic performance without inflation or bias. The Compact also defines sex-based distinctions (for sports and privacy spaces) according to biological definitions.
Issues: Many colleges have provided spaces for inclusiveness of all gender identities. This seeks to define just male and female genders.
Financial Responsibility and Transparency
To address student debt and administrative cost inflation, signatories commit to freezing tuition for five years, eliminating unnecessary staff, disclosing program-level earnings outcomes, and refunding tuition to students who withdraw in their first term. Institutions with very large endowments must waive tuition for certain science students and accept full transfer credit for military service members.
Issues: Many colleges may not be in a financial position to be able to commit to this, despite it being a positive for individual students.
Foreign Influence and Enforcement
Universities must comply with federal anti–money laundering laws, “Know Your Customer,” and foreign gift disclosure laws. Foreign student enrollment is capped at 15% of the undergraduate population (5% per country), and schools must vet students for anti-American sentiment. Annual certification and audits are required, with penalties (including loss of Title IV benefits) for violations.
Issues: Some colleges derive a significant amount of their revenue from foreign students, who typically pay full price and don’t receive financial aid. Combine that with limitations of speech and increased costs to audit, and it’s problematic.
➡️ Overall Impact: Colleges are under pressure to choose sides — accept stricter federal terms or reject funding and defend institutional autonomy.
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Editor: Colin Graves
The post This Week In College And Money News: October 17, 2025 appeared first on The College Investor.