
Shifts in federal and state policy are shaping how students get aid, how universities operate, and what families can expect to pay in the coming years. Here are three key developments over the past few days that are of interest to students, borrowers, and anyone tracking higher education costs.
Here’s a quick look at the most important developments shaping higher education and student finance this week on November 21, 2025.
🎓 Top headlines at a glance
- The Department of Education hands off six major programs to other federal agencies.
- The University of California approves a study plan that allows for annual increases.
- New data shows wide gaps in money management among college students.
US Department of Education
Would you like to save this?
1. The Department of Education transfers six programs to other federal agencies
The US Department of Education has begun transferring the operation of six higher education programs to other federal agencies through a series of interagency agreements. The programs will be funded by the Department for Education but will be managed elsewhere. This change comes as management continues its restructuring efforts that began earlier this year.
This shift raises questions about continuity, oversight, and how institutions interact with programs that are no longer directly managed within the same department.
➡️ impact: Any change in federal program ownership could disrupt award timelines, compliance expectations, and institutional planning—all of which impact how quickly students receive support.
2. UC Regents approve tuition model with annual increases of up to 5%
the The University of California system has approved a new tuition increase This allows An increase of up to 5% annuallyalthough each group of undergraduate students will lock in their GPA for six years. The plan aims to provide predictable prices for students while giving universities more flexibility to respond to rising operating costs.
The move comes at a time when public university budgets are under pressure due to fluctuating state funding, inflation and enrollment pressures.
➡️ impact: For families, the new model means planning for a higher initial price, while also benefiting from price stability once you sign up. For the campus, it brings revenue stability and public scrutiny to future pricing decisions.
3. Financial literacy gaps persist among college students across the country
New pReports from the National Association of Student Financial Aid Administrators (NASFAA) Highlights that more than 40% of university students They lack basic money management skills, including budgeting, understanding interest, and comparing financial aid options. These findings add to growing concerns that students enter college academically prepared but financially unprepared.
Colleges are responding with required workshops, seminars, and digital tools, but participation remains uneven.
➡️ impact: Poor financial literacy skills can lead to increased student loan borrowing, credit card debt, and difficulty navigating financial aid programs – all of which impact long-term outcomes for students and families.
Related reading:
The Trump administration could stop funding the CFPB by 2026
IRS announces official IRA and 401k contribution limits for 2026
10 Biggest FAFSA Mistakes That Could Cost You Financial Aid
Editor: Colin Greaves
The post This Week in College and Money News: November 21, 2025 appeared first on The College Investor.


