The SORT — June 8: Loan Glitch Stalls Summer Aid
System bugs in the federal financial-aid pipeline are delaying loans for summer-starting students, while Harvard begins cutting through a nine-figure budget deficit.
OBBBA Loan-Limit Rollout Stalls Aid for Summer-Starting Students
When the Education Department updated its financial-aid systems on April 26 to enforce One Big Beautiful Bill Act borrowing caps, a key eligibility flag failed to populate correctly, pausing loan processing for about a week. Medical, dental, and veterinary students starting summer programs have since reported delayed disbursements and incorrect cap notices — the Association of American Universities has called on Congress to delay the graduate loan caps given the disruption. NASFAA reports ED published a FAQ on the new limits, but implementation questions remain.
Why it matters: If you or a family member is starting a professional-degree program this summer and loan funds haven't arrived, contact the school's financial aid office immediately — delays appear to be system errors, not individual borrower problems.
Source: The College Investor
Harvard Cuts Senior Administrators Amid $365M Budget Deficit
Harvard's Faculty of Arts and Sciences laid off its three divisional administrative deans on June 2 — the opening move of a McKinsey-designed restructuring that could ultimately eliminate up to 25% of FAS staff. The deficit, projected at $365 million, stems largely from Congress raising the federal endowment tax to 8% last year, a change Harvard's College dean said costs FAS roughly $100 million annually. The school has also slashed Ph.D. admissions and paused non-essential capital projects.
Why it matters: The cuts show that even the wealthiest universities face real financial strain from the endowment tax — a trend worth watching for anyone applying to schools with large endowments.
Source: The Harvard Crimson
Where do you stand?
Check your admission chances free →Know a family who'd find this useful? Send it their way.
Put this to work
See what college would actually cost you
Estimate the net price for your list and compare aid offers side by side — the sticker is the wrong number.
