Federal and state policy shifts are shaping how students access aid, how universities operate, and what families can expect to pay in the coming years. Here are three major developments from the past few days that matter for students, borrowers, and anyone tracking higher-education costs.

Here’s a quick look at the most important developments shaping higher education and student finances this week for November 21, 2025.

🎓 Headlines at a Glance

• Education Department hands six major programs to other federal agencies.
• University of California approves a tuition plan allowing annual increases.
• New data shows widespread money-management gaps among college students.

1. Education Department Moves Six Programs to Other Federal Agencies

The U.S. 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 still be funded by ED but administered elsewhere. The change comes as the department continues restructuring efforts that began earlier this year.

The shift raises questions about continuity, oversight, and how institutions will interact with programs that are no longer directly run from within the department itself.

➡️ Impact: Any change in federal program ownership can disrupt grant timelines, compliance expectations, and institutional planning — all of which influence how quickly students receive support.

2. UC Regents Approve Tuition Model With Annual Increases Up to 5%

The University of California system approved a new tuition hike that allows up to a 5% increase per year, though each entering undergraduate cohort will lock in its rate for six years. The plan is intended to provide predictable pricing for students while giving campuses more flexibility to respond to rising operating costs.

The move comes at a time when public university budgets are under strain from state funding volatility, inflation, and enrollment pressures.

➡️ Impact: For families, the new model means planning for a higher starting price, but also benefiting from rate stability once enrolled. For campuses, it brings both revenue stability and public scrutiny on future pricing decisions.

3. Financial-Literacy Gaps Persist for College Students Nationwide

New reporting from the National Association of Student Financial Aid Administrators (NASFAA) highlights that more than 40% of college students lack basic money-management skills, including budgeting, understanding interest, and comparing financial-aid options. The findings add to growing concerns that students are entering college academically prepared but financially unprepared.

Colleges are responding with workshops, required seminars, and digital tools, but participation remains uneven.

➡️ Impact: Poor financial-literacy skills can lead to higher student loan borrowing, credit card debt, and difficulty navigating financial aid programs — all of which affect long-term outcomes for students and families.

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