Economic uncertainty prevalent in 2025 complicates financial planning for colleges and universities. Nearly two-thirds of chief business officers report that federal policy uncertainty inhibits basic financial planning. Robert Kelchen emphasizes that financial uncertainty in higher education is unprecedented. Unlike the early pandemic, when federal support quickly alleviated issues, current conditions stem from government-induced uncertainty. The survey shows that 49% of institutions experience moderate impacts, while 14% face severe disruptions. The findings reflect widespread concerns about federal student aid policy changes and the ability to navigate fiscal challenges.
"Higher education has not faced this level of financial uncertainty in generations," said Robert Kelchen, chair of educational leadership and policy studies at the University of Tennessee at Knoxville, who reviewed preliminary survey data. Recent history offers one comparison—the early days of the pandemic, when uncertainty was similarly 'off the charts.' However, back then, the federal government 'quickly stepped in to provide support.' Today, by contrast, the federal government 'is causing the uncertainty.'
According to the survey, federal policy uncertainty under the second Trump administration is moderately impacting basic financial planning at 49 percent of institutions represented, meaning that challenges have arisen but CBOs and their colleagues have managed to adapt. Another 14 percent of institutions are severely impacted, meaning basic financial planning has been extremely difficult, leading to major disruptions. This is consistent across sectors.
CBOs see federal student aid policy changes as a major risk, with 68 percent citing this as a top federal concern affecting their financial planning processes.
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