The Key with Inside Higher Ed Ep. 165: The Tricky Timeline of the Big Beautiful Bill, a Mark on UVA, Record FAFSA Figures
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Jul 17, 2025 Katherine Knott, News Editor at Inside Higher Ed, dives into the shifts in federal higher education policy following the passage of the Big Beautiful Bill. She discusses staffing challenges at the education department and the implications for institutions like the University of Virginia amid federal pressures. The conversation also highlights new funding reforms, including changes to student loans and the significance of stronger FAFSA applicant rates. With exciting predictions for future legislative battles, it's a crucial update on the evolving landscape of higher education.
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Endowment Tax Adjusted
- The endowment tax increases but exempts small colleges with fewer than 3,000 students.
- Notable lobbying success softened originally harsher proposals, sparing many institutions from large financial burdens.
Timeline for Key Provisions
- Major student loan and accountability provisions in the Big Beautiful Bill will take effect on July 1, 2026.
- Implementation challenges loom due to Education Department staffing shortages and potential delays.
DOJ Influence at UVA
- DOJ pressured University of Virginia's president Jim Ryan to resign over noncompliance with dismantling DEI programs.
- This marked a new federal tactic targeting public universities with vague legal interpretations and quiet enforcement.