Colleges will have to pay millions under Trump’s new tax bill

Colleges will have to pay millions under Trump’s new tax bill

Universities use their endowments to fund critical operations and to provide services, such as tuition assistance to low-income students

University Endowments Will Be More Heavily Taxed and Student Federal Borrowing Will Be Capped

New York The approved Trump administration domestic policy bill will expand taxes on endowments that universities often use for financial aid (typically about 5%), cap the federal amount students can borrow for graduate programs, and allow students in short-term work training programs in community colleges to become eligible for Pell Grants. Also, the bill would “make college less affordable,” said Lynn Pasquerella, president of the American Ass…