This Week In College And Money News: October 24, 2025

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 25, 2025.

🎓 Headlines at a Glance

• Washington University in St. Louis declines Trump’s federal higher-ed “Compact” over academic freedom concerns. We talked about the Higher-Ed Compact last week.
• New research shows most students pay for non-degree credentials out-of-pocket.
• The federal shutdown continues to disrupt university funding and research.
• Nearly half of Harvard’s incoming class will attend tuition-free under current aid policies.
• The Education Department agrees to resume student loan forgiveness for 2.5 million borrowers.

1. Washington University in St. Louis Declines New Federal Higher-Ed “Compact”

Washington University in St. Louis confirmed that it will not sign the Trump administration’s proposed Compact for Academic Excellence in Higher Education. In a statement this week, Chancellor Andrew D. Martin said the agreement “does not align with our mission” and raised concerns about limits on academic freedom, diversity, and international collaboration.

➡️ Impact: The move adds WashU to a growing list of institutions rejecting the compact, joining MIT, Brown, and Dartmouth. Those institutions could face restrictions on federal funding tied to compliance.

2. Report Finds Most Students Pay Out-of-Pocket for Non-Degree Credentials

A new study from Strada Education Foundation and the Lumina Foundation found that nearly two-thirds of adults pursuing certificates, bootcamps, or short-term credentials are paying costs themselves rather than receiving employer or government support. Researchers said the trend highlights both the popularity and the financial strain of pursuing non-degree pathways in an uncertain labor market.

➡️ Impact: While many programs report positive career outcomes, the lack of financial aid options may leave students without the safety nets available to degree-seeking peers.

3. Federal Shutdown Deepens, Colleges Report Funding Strains

As the federal government shutdown enters its fourth week, universities are reporting increasing financial strain. For example, the University of Hawaii is having to make up employee payroll that’s missing due to the shutdown. Georgia Tech created a shutdown page to highlight it’s activities. Administrators say prolonged inaction could delay critical research tied to National Science Foundation and Department of Education programs.

➡️ Impact: Public universities and research institutions face heightened uncertainty as funding is paused and federally funded projects stall.

4. Nearly Half of Harvard’s Class of 2029 Will Attend Tuition-Free

Harvard University announced that 45% of its incoming Class of 2029 will attend tuition-free under the institution’s need-based financial aid policies. The class also set a record 83.6% overall yield rate, with international students yielding at 90.3%. The university continues its policy that families earning under $85,000 annually pay nothing toward tuition, housing, or fees.

➡️ Impact: The figures underscore strong demand for elite universities even amid national scrutiny of higher education costs, and they highlight how financial aid remains a deciding factor for access and affordability.

5. Education Department to Resume Loan Forgiveness for 2.5 Million Borrowers

The U.S. Department of Education agreed to resume processing loan forgiveness for approximately 2.5 million borrowers following a settlement with the American Federation of Teachers (AFT). The agreement ends months of legal uncertainty over stalled discharges under income-driven repayment plans such as IBR, PAYE, and ICR.

➡️ Impact: Eligible borrowers will see loans canceled and will not owe federal income tax on forgiven balances, as current law excludes such forgiveness from taxable income through 2025.

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