2025 has been quite a year for higher education. When the Trump Administration took office in January, it wasted no time initiating efforts to deliver on campaign promises such as cutting administrative costs and dismantling the Department of Education.
Factor in the influences of the struggling economy, the growing presence and use of AI (Artificial Intelligence) and social discontent on campus’s and it makes for one tumultuous year in higher ed.
1. The One Big Beautiful Bill Act (OBBBA)
When the OBBBA passed in Summer of 2025 it included several changes to student loans and student loan repayment that included:
- The elimination of the Grad PLUS loan program
- Changes in loan limits for Graduate Students borrowing Direct Unsubsidized loans
- Changes in loan limits for Parent PLUS loans
- A new Standard Repayment program
- The elimination of some existing repayment programs
- The creation of a new repayment program – RAP (Repayment Assistance Plan)
2. The Dismantling of the Department of Education
Just a few months into his new administration President Trump signed an executive order calling for the closure of the Department of Education (ED). ED is responsible for the federal financial aid system that makes higher education accessible for countless students. ED manages the application process (FAFSA – Federal Application for Financial Student Aid), sets policy to determine eligibility criteria for aid and distributes the aid in the form of grants, federal student loans and work-study programs. The Department of Education also manages the repayment of its federal student loans through its Federal Student Aid (FSA) office.
Despite the President’s wishes to close down ED, it’s not within his power alone to do. Closure would require a congressional vote that doesn’t appear likely. Instead, his Secretary of Education has been quietly outsourcing ED functions to other agencies within the federal government. It’s unclear what will happen to ED once all the functions have been successfully outsourced. It could just end up a shell of its former self, overseeing efforts but not executing on them anymore.
3. Federal Grant Funding Tied to Compliance with Government Policies
Many of the major events impacting higher education have come out of the Trump Administration and this next one was one of the first. In his initial 24 hours in office, President Trump signed a staggering 26 executive orders, among them an executive order titled Ending Radical and Wasteful Government DEI Programs and Preferencing.
This order has implications for college campuses that rely on federal funding and grants for several of their programs and graduate level studies. Federal funding could be cut if a school is determined to be participating in prohibited DEI (Diversity, Equity and Inclusion) activity. Without the funding the school will either have to cut the program and adjust their budget to account for the loss in federal funding, likely impacting other activities on campus.
4. Legal Challenges Regarding 1st Amendment Rights on Campus
Also on his first day in office President Trump signed an executive order to protect the United States from foreign terrorists and other national security and public safety threats. While the order doesn’t explicitly mention college campuses it does have language to imply it’s reach extends to recent activity on college campuses.
In the spring of 2024, in response to the ongoing conflict in Israel and Palestine, protests broke out on several college campuses. Classes were disrupted, property was damaged, and some students no longer felt comfortable or safe, as the ongoing protests persisted. The executive order speaks to protecting citizens from those who espouse hateful ideology.
This is further emphasized by another executive order signed nine days later calling for additional measures to combat antisemitism with a specific mention to combat campus antisemitism resulting from the Israel and Palestine conflict.
Civil rights advocates have quickly challenged these orders in court arguing it violates Americans rights to free speech. While this plays out in the courts, there have been no significant protests on college campuses to speak of. It’s unsure if the current calm on campuses is because of the executive orders or if students are waiting for the courts to make a final decision.
5. AI’s Influence on Teaching, Learning & Jobs for New Grads
Artificial intelligence (AI) is no longer a futuristic concept. It’s here, it’s everywhere and that includes higher education. AI is actively reshaping the traditional college experience from the lecture hall to career preparation by transforming teaching methods, pushing classrooms toward personalized, adaptive learning models that tailor coursework in real time based on student performance.
Educators are shifting from being sources of information to facilitators embracing new digital tools to create dynamic, interactive learning environments. For students, success no longer stems from memorization but from synthesizing information, solving problems creatively, and collaborating with AI. Traditional essays and exams are giving way to assessments that value transparency and "AI literacy," requiring learners to show how they leverage technology to enhance their work.
Most likely the biggest impact AI is having on students, is when they prepare to enter the workforce. AI is automating many of the tasks that once defined entry-level positions, such as data entry, coding, and content creation. New graduates can no longer rely on the traditional "learning by doing" model. Instead, they must hone soft skills that are difficult for AI to replicate, like emotional intelligence, strategic thinking, and complex negotiation.
The most successful graduates will be those who become experts at managing and integrating AI, positioning themselves as architects of AI-driven solutions rather than simply competing with automation. This evolution in higher education and the workplace calls on both educators and students to adapt, ensuring that human creativity and judgment remain at the heart of academic and professional achievement.
