Week in Insights: College Endowment Tax Policies Need Finesse

The Trump administration’s potential expansion of university endowment tax policies and retreat from student loan reform could have significant ripple effects. Although endowment taxes are often couched as policies targeting ultra-wealthy, elite institutions, their implications may extend beyond the Ivy League—and reshape higher education and portions of the economy reliant on university investments.

Expanding endowment taxes would likely diminish financial aid resources for students. This would particularly affect students from disadvantaged backgrounds who could be forced to take on substantial debt, exacerbating the nation’s student loan crisis.

But university endowments don’t just fund scholarships—they’re also key ...