Category: Features

  • No, Endowments Are Not the Answer to Federal Attacks on Higher Ed

    No, Endowments Are Not the Answer to Federal Attacks on Higher Ed

    Learn more about how endowments support students and research: Contact Congress, read our brief Understanding College and University Endowments, and explore our Tax Resource webpage.

    The Trump administration has launched an aggressive and unprecedented attack on higher education—unlike anything we’ve seen before. Billions of dollars in federal support for vital research on diseases like cancer, Alzheimer’s, and HIV disappeared overnight. The law and longstanding due process protections for institutions have been disregarded.

    These sweeping actions have harmed every type of institution—and, more importantly, the students and communities they serve. As a consequence, colleges and universities have been forced to freeze hiring, lay off staff, eliminate programs, halt life-saving clinical trials, and pause graduate admissions—all within the administration’s first 100 days.

    Some traditional supporters of higher education, as well as frequent critics, suggest that there is an easy way out: colleges and universities should simply use their endowments to plug these sudden financial gaps. This idea has come from across the political spectrum—from Republican Rep. Andy Harris of Maryland and the conservative-leaning American Enterprise Institute to liberal New York Times columnist Ezra Klein and the left-leaning think tank New America.

    These calls to “just spend the endowment” tend to resurface during crises, as seen during the 2008 financial crisis and the COVID-19 pandemic. If endowment spending increased then, why can’t the same thing happen now? It sounds simple, but it’s wrong.

    First, while institutions have increased endowment spending during major emergencies, the billions of dollars in research funding cuts being proposed now dwarfs anything confronted previously. In 2023, the federal government provided nearly $60 billion on research funding, compared to total endowment spending—financial aid, research, student services, academics, operations, and more—of about $35 billion, according to IPEDS data.

    Second, during these recent crises, institutions didn’t have to shoulder the burden alone. They acted in partnership with the federal government and other stakeholders to weather the storm. That shared response made a difference. In 2025, however, the federal government isn’t a partner—it’s the source of the crisis. And unlike past emergencies, there is no clear end in sight, leaving open the potential of a devastatingly long-term drain on endowments.

    Third, endowments are not like a single checking or savings account that can be dipped into at will. Instead, they consist of up to thousands of individual accounts, the vast majority of which are legally restricted by donors. These restrictions often designate support for specific purposes like expanding financial aid, supporting the chair of a particular academic discipline, or fueling groundbreaking medical and technological research. Most endowment spending boosts access for low-income students and academics. The 2024 NACUBO-Commonfund Study of Endowments found that almost about two thirds of endowment spending goes directly to financial aid and academics, and institutions with large endowments are the most likely to provide need-blind admissions, meet students’ full financial need, and offer no-loan financial aid packages. These funds cannot legally be redirected to make up for canceled government funding—or bail out reckless federal policy decisions.

    Even the wealthiest institutions don’t have enough unrestricted funds to routinely absorb massive, sustained cuts without irreparably draining their endowments. Endowments are managed like marathon runners: they expend energy strategically, knowing they can’t sprint the whole race. There are times to surge—such as during the pandemic—but that pace can’t last. Try to sprint the whole race, and the endowment, like a runner, collapses. Reckless financial decisions today won’t just hurt current students—they’ll shortchange the next generation as well.

    For this reason, endowment spending is closely monitored, regularly audited, and guided by strict policies designed to ensure long-term sustainability. Colleges and universities spend what is both prudent and legally permitted each year while preserving benefits for future students. According to the 2024 NACUBO report, institutions’ average effective spending rate was nearly 5 percent. That figure isn’t arbitrary. It’s shaped by state laws, donor intent, and sound financial stewardship. Some states actually impose legal restrictions on the percentage of endowment spending each year. For example, in Ohio, spending more than 5 percent in a given year could expose an institution to legal liability.

    Misconceptions about endowments aren’t just misleading—they threaten the very people and programs that they were created to support: scholarships, research, academic excellence, and the futures of countless students and faculty. And they divert attention from the real issue: an unprecedented assault on American higher education.

    If you have any questions or comments about this blog post, please contact us.

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  • Three Easy Tax Fixes That Would Help Students Succeed

    Three Easy Tax Fixes That Would Help Students Succeed

    As Congress works on a sweeping rewrite of the tax code, students and families across the country are watching—and hoping this moment leads to real change that will increase access to higher education. The conversation in Washington will likely center on what to keep, what to cut, and how to fit higher education into the massive, complex puzzle that is the U.S. tax code. But lawmakers have a chance to do something simple but powerful: pass three bipartisan tax fixes that would make a big difference for low- and middle-income students.

    These fixes may not grab national headlines, but for those trying to pay tuition, cover everyday expenses, return to school to finish a degree, or chip away at their student loan debt, they could make a meaningful difference. In a time of deep partisan divides, Congress should focus on policies with broad, bipartisan support—especially those that are low-cost and already proven to help students succeed.

    Here are three commonsense ideas that would do just that:

    1. End the Tax on Pell Grants—So Students Can Keep the Aid They Deserve

    For over 6 million low-income students, the Pell Grant is a lifeline—essential financial aid to help cover the cost of college. But under current tax law, Pell Grants used for some non-tuition expenses like housing or childcare can be taxed as income. That means students from families earning less than $60,000 a year could end up with a tax bill just for trying to make ends meet while earning their degrees.

    Even worse, a complicated interaction issue between Pell Grants and the American Opportunity Tax Credit (AOTC) means many students at lower-cost schools—especially community colleges—lose access to the up to $2,500 of aid available under the AOTC entirely. Under current law, students can’t apply both Pell Grants and the AOTC to the same tuition costs. If a Pell Grant covers most or all of a student’s tuition, as can be true for community college students, there may be nothing left to claim the credit on. The only workaround is to apply the Pell Grant to other expenses—like housing or childcare—which then makes it taxable. It’s a frustrating and unfair setup that affects an estimated 550,000 Pell-eligible students every year.

    Repealing the taxability of Pell Grants and fixing this interaction issue would allow students to keep more of the financial aid they’ve earned and simplify their tax filing process. Bipartisan legislation—the Tax-Free Pell Grant Act—would make this change, and it’s time for Congress to act.

    2. Modernize Section 127—So More Working Students and Families Can Access Education

    Today’s students aren’t just full-time undergraduates living in dorms. They’re parents, veterans, career changers, and working professionals going back to school to earn a degree or build new skills. One of the best tools to help them is employer-provided education assistance under Section 127 of the tax code, which lets employers provide up to $5,250 per year in tax-free educational assistance and student loan repayment.

    This benefit helps working students cover tuition, buy course materials, and even pay down student loans. But there’s a catch: the $5,250 cap hasn’t changed since 1986, and the provision allowing employers to use the benefit to help with student loan payments is set to expire this year.

    Several bipartisan bills—such as the Upskilling and Retraining Assistance Act and the Upward Mobility Enhancement Act—would raise the cap and allow benefits to cover education-related tools and technology. Another bill, the Employer Participation in Repayment Act, would make student loan repayment a permanent option.

    Modernizing Section 127 is a smart, low-cost way to expand opportunities for students who are balancing work, life, and learning—and give employers a powerful tool to invest in their workforce.

    3. Simplify Higher Ed Tax Credits—So Students Actually Receive Benefits for Which They’re Eligible

    In theory, the AOTC and Lifetime Learning Credit (LLC) are designed to make college more affordable. But in practice, the system is so confusing that many students don’t even know they’re eligible—let alone understand how to claim the credits.

    Only 60 percent of eligible students claim the AOTC, and take-up rates are even lower for low-income students. That means thousands of dollars in aid per student are going unclaimed, simply because the system is too complex.

    Students deserve better. A single, streamlined tax credit would help more people afford college, finish a degree, or return to school for career training. Past bipartisan proposals have called for combining the AOTC and LLC into one simplified, flexible credit. These plans would also expand what counts as eligible expenses—like computer equipment and childcare—so the benefit reflects the real costs students face today.

    By making the system simpler and more effective, Congress can ensure that intended benefits actually reach the students who need them most.

    A Better Deal for Students

    Comprehensive tax reform doesn’t come around often. This year, Congress has a chance to use that opportunity to advance policies that support the millions of students working hard to improve their lives through education.

    Fixing the tax treatment of Pell Grants. Modernizing employer-provided educational assistance. Simplifying higher education tax credits. These aren’t controversial ideas—they’re bipartisan, fiscally modest, and widely supported by educators, employers, and students alike.

    If Congress wants to demonstrate that tax reform can be fair, effective, and focused on the future, they should start by putting students first.

    Students, families, and advocates should urge their representatives to make higher education a priority in this year’s tax reform. They can easily do so using ACE’s Voter Voice feature. For more, visit our Tax Reform resource page.

    If you have any questions or comments about this blog post, please contact us.

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  • Q&A: Bill Shorten talks VC pay cuts, student happiness, and giving UC staff hope

    Q&A: Bill Shorten talks VC pay cuts, student happiness, and giving UC staff hope




    By: Erin Morley

    in Features, Top Stories, VC’s corner


    March 3, 2025

    The new vice-chancellor of the University of Canberra (UC) Bill Shorten said universities will never make everybody happy, but they should do their best to try.

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  • 2024 Shaping Australia award winners announced

    2024 Shaping Australia award winners announced

    The Future Builder award winners. Picture: UA



    By: Erin Morley

    in Features, Top Stories, Workforce


    February 26, 2025

    Researchers who developed coffee ground-infused concrete, a rust disease cure for wheat crops and an intellectual-disability friendly playground took home a Universities Australia Shaping Australia award on Tuesday night.

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  • HEDx Podcast: Penn State chancellor Dan Greenstein – Episode 152

    HEDx Podcast: Penn State chancellor Dan Greenstein – Episode 152



    By: Martin Betts

    in Analysis, Features, International Education, Podcasts, Radio+TV, Top Stories


    February 3, 2025

    Pennsylvania State University chancellor emeritus Dan Greenstein joins Martin Betts to discuss his varied career and how it impacts his work today.

    The chancellor has held roles at the University of Oxford, the University of California, the Gates Foundation and Boston Consulting.

    He explains the recruitment platform that facilitated the university’s major mergers and what front office systems transformed student experience and institutional sustainability.

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  • Dear President-elect Trump: Higher Education Builds America

    Dear President-elect Trump: Higher Education Builds America

    As you prepare to take office for a second time, we know you have ambitious plans to address the nation’s challenges and build a more secure and prosperous America. Achieving those goals will require contributions from many areas of society, and we urge you to see the value in partnering with our nation’s colleges and universities.

    Campuses across the country are deeply embedded in local communities and work every day to build their communities while meeting national needs. Let me share just three of many examples:

    Many, including you, have criticized higher education in recent years. We know that we always have room to innovate and improve. But we also know a basic truth: higher education builds America. This has been understood by American presidents since the nation’s founding. That conviction inspired landmark legislation such as the land-grant acts of the 19th century and the GI Bills of the 20th and 21st centuries—measures that contributed to unprecedented economic and technological growth.

    Study after study has documented the benefits colleges and universities provide to the workforce and the economy. For example, Georgetown University’s Center on Education and the Workforce found that less than a decade from now 72 percent of jobs in the American economy will require some level of postsecondary education or workforce training. Simply put, every pathway to expanding our economy and filling employers’ needs runs through colleges and universities.

    The American Council on Education (ACE), which I lead, is the major coordinating body for the nation’s colleges and universities. Our members include community colleges, liberal arts colleges, regional universities, and research universities. They are public and private, large and small, urban and rural. Many have religious affiliations.

    We have common-sense recommendations to help your administration and the new Congress deliver on the goals of all Americans: a safe and secure country, a prosperous economy with good jobs, and uncontested global leadership in developing new technologies. You can do that by extending Pell Grant eligibility to those who enroll in high-quality, short-term programs. You can do that by helping military service members and veterans further their careers through higher education. And you can do that by advancing research that saves lives and bolsters national security.

    Our colleges and universities work on behalf of all Americans, from every walk of life and every political perspective. While you may not always agree with us on every issue, ACE and our members are committed to fighting for the policies, principles, and values that ensure our students, their families, and our nation will flourish. So while we may differ in some areas, we also know there is much common ground.

    We are deeply concerned about the impact of proposed immigration changes on students, staff, and families, and appreciate your concern for those known as “Dreamers,” who came to the United States as children. As you stressed in a recent interview, these outstanding young people have made numerous contributions to America, and we must safeguard their futures in the only country they have ever known as home. Likewise, we fully agree that America benefits immensely by continuing to attract the brightest and most talented students from around the world to study, work, and innovate here.

    We pledge to be accountable to your administration, Congress, and the public. If you, Secretary of Education-designate Linda McMahon, and others in your administration see areas where we can do better, we are eager to sit down and discuss them. We hope, in turn, to have the opportunity to demonstrate how the know-how and creativity that runs deep through our campuses can help you accomplish your most important objectives.

    Our overriding goal is to provide more opportunity for all Americans. Like you, we are ready to get to work to deliver results. Together, we can build a better America.

    If you have any questions or comments about this blog post, please contact us.

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  • The Power of Personal Storytelling in Higher Education Leadership

    The Power of Personal Storytelling in Higher Education Leadership

    When I became president of the University of La Verne in 2011, I often shared the story of why I was drawn to this role—and why it resonated so deeply with my family’s values. My husband and I were committed to raising our daughters in a community that embraced inclusivity, service, and the transformative power of education. These were not just abstract ideals; they were principles we wanted to live by and instill in our children. And sharing this connection wasn’t just about explaining my leadership—it was about building trust and fostering relationships across campus.

    Today, as higher education leaders face unprecedented scrutiny—from political attacks on academic freedom and diversity efforts to growing public skepticism about the value of a college degree—this kind of authenticity and connection is more critical than ever. Our institutions are being challenged to prove their relevance and align their missions with the needs of diverse and sometimes skeptical communities. In this climate, personal storytelling offers a powerful way to build bridges, humanize our roles, and reaffirm the values that define higher education. In navigating the complexities of our current environment, storytelling is not just a leadership tool—it’s a leadership imperative.

    Why personal storytelling matters

    Building authentic relationships: Personal stories bridge the gap between leaders and campus communities. Sharing your experiences, challenges, and successes makes your role more relatable and human. When leaders share stories authentically, we foster trust and encourage deeper connections with our students, faculty, alumni, donors, and other stakeholders. A compelling story has a way of bringing people together, sparking that feeling of connection through common experiences.

    Inspiring action and change: Stories are powerful motivators. They show how education can transform lives, encouraging students to pursue their dreams, sparking innovation among faculty, and connecting with alumni and donors. At the University of La Verne’s annual Scholarship Gala, I used to share my mother’s story—how, as an immigrant, she stayed committed to education despite countless challenges. When she, her two older sisters, and their parents first immigrated to the United States from Czechoslovakia, they had to build a new life, learn a new language, and adapt to new customs. My grandfather would bring used tires to their home, where the family would cut them into small squares and sew them together to create doormats. He sold these mats door-to-door, and the money they earned not only supported their daily life but was also saved so that my mother could attend nursing school.

    Each year following my story, students would respond with their own incredible stories of resilience. Those moments didn’t just inspire greater scholarship donations—they raised awareness about the challenges that so many students face, underscoring just how vital access to education really is.

    Shaping institutional culture: Personal stories are a big part of what shapes a university’s identity, creating a sense of inclusion, resilience, and shared values. Early on in my time at the University of La Verne, a board member told me why the university—her alma mater—meant so much to her and why she chose to give back as a donor and leader. She often spoke about how she and her husband met while attending La Verne, and that they both loved the supportive and inclusive environment at the university. Then one of her children enrolled, and a particular professor took him under his wing and helped him with his academic career. She felt La Verne was always there when she and her family needed support.

    Her story stuck with me, and I shared it often as an example of how personal connections can inspire others to support the university’s mission. By encouraging storytelling like this, we brought our community closer together and reinforced our shared purpose.

    Engaging with diversity: Every story brings something unique to a campus community. When we make room for diverse voices, we naturally build stronger connections and a sense of belonging. Serving on the board of Antioch University, I’ve had the privilege of hearing a wide range of students and faculty share their experiences—some inspiring, some challenging, all meaningful. These moments are a great reminder of how much we gain when we listen to and learn from each other.

    Strategies for Effective Storytelling

    Connect stories to the institution’s mission: Personal stories are powerful, but they work best when they connect back to the institution’s goals. I once attended a university event where the president’s stories, while memorable, didn’t really support the message of the institution—they overshadowed it, leaving the audience entertained but not necessarily inspired about the university’s future. It’s a good reminder that storytelling should always reinforce the mission and build confidence in what lies ahead.

    Balance sharing with relevance: Finding the right balance between personal and professional storytelling is key. Oversharing can make people uncomfortable or distract from your message. A story might be heartfelt, but if it’s too detailed, the audience might lose track of why it matters. The best approach is to share meaningful anecdotes that highlight your points while keeping your audience and the setting in mind.

    Maintain honesty and humility: The best stories come from a place of honesty and humility—they build credibility and trust. Think about great leaders: the ones who acknowledge the contributions of others tend to connect more than those who focus on their own achievements. On the flip side, self-congratulatory stories can feel off-putting and even break trust with the audience. Keep it grounded, which always resonates better.

    Avoid unethical exaggeration: Stretching the facts or making up stories can seriously damage trust. And people can usually tell when a story isn’t genuine, whether it’s because of over-the-top details or a lack of authenticity in the delivery. It’s important for leaders to stay honest, sharing meaningful details without straying from reality. In today’s world, where fact-checking is everywhere, even small inconsistencies can hurt your credibility—and by extension, the reputation of your institution. Keep it real, and your message will always carry more weight.

    Repetition without redundancy: Repeating key messages can really help drive them home, but it’s all about balance. When you tell the same story to different audiences, it can show consistency and authenticity, which is great. But if you overdo it, people might start to tune out, feeling like they’ve heard it too many times. We all recycle our favorite speeches and stories when we speak often, and that’s fine as long as we’re mindful of keeping it fresh. A thoughtful approach to storytelling means your message stays powerful without losing its impact.

    ************

    Personal storytelling is one of the most powerful tools leaders in higher education have at their disposal. When done right, it builds trust, inspires action, and strengthens the sense of community. Sharing authentic stories helps connect audiences to the mission and values of an institution, creating a shared sense of purpose and vision.

    As higher education continues to navigate challenges like public skepticism and political scrutiny, storytelling offers a way to highlight the transformative power of education. It allows us to address concerns with honesty and integrity, while keeping the focus on the positive impact education has on individuals and society. Reaching beyond the academy, these stories help build connections with the wider community—and ideally, around the world—showing how education shapes lives and strengthens society.

    dotEDU Global Voices

    This December, ACE will feature a special podcast series, dotEDU Global Voices, which will spotlight personal stories from accomplished international women university presidents. These leaders share their unique challenges, insights, and strategies, offering authentic and inspiring perspectives on leadership.

    The series builds on my book, Spotlighting Female Leadership: Strategies, Stories, Perspectives, which highlights the journeys of ten accomplished university presidents. To learn more, download the book here and tune into the podcast for further inspiration.

    Episode 1: Trailblazing Leadership in Turkey: Gülsün Sağlamer

    Episode 2: Discovering Your Leadership Path: Sue Cunningham

    Episode 3: Changing History at Colegio de México: Silvia Giorguli

    If you have any questions or comments about this blog post, please contact us.

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  • Good News About the FAFSA

    Good News About the FAFSA

    Millions of current and prospective college students were let down last year when the federal rollout of the new FAFSA form was badly bungled and delayed for months. The fallout from the resulting chaos and uncertainty was well-documented and widespread, including a drop in over 5 percent in first-year enrollment for fall 2024 linked at least in part to the FAFSA problems.

    But now, there is some good news for students, their families, and the institutions working hard to ensure that low- and middle-income students have a path to higher education.

    While we have been harsh critics of the Department of Education’s failed FAFSA rollout, it is important to recognize when they’ve done well. The department committed to making the new FAFSA form work as intended for the next academic year—and they not only have accomplished that, but they have also done it faster than promised, and faster than many expected.

    Education Secretary Miguel Cardona announced Nov. 21 that after four successful rounds of beta testing, the 2025-26 FAFSA form is now available to all students and families. While we would have preferred for the 2025-26 FAFSA to have been available on Oct.1, we applaud that the department’s announcement came 10 days ahead of the promised Dec. 1 date, and the system appears to be performing as expected. In addition, this fully opens the gateway to the other benefits of the new FAFSA form, including allowing hundreds of thousands more individuals to access Pell Grants, the cornerstone of college affordability for so many students.

    This success is mirrored by a rare bipartisan moment in Congress that underscores how important it is to get federal student financial aid determinations to low-income students as early as possible. During the lame-duck session of Congress–and despite the partisan polarization and acrimony of the election season—the House and Senate approved and sent to President Biden legislation  aimed at streamlining the application process for federal student aid by making Oct. 1 the official FAFSA launch date each year.

    ACE and other higher education associations identified how critical this change in date was, and Congress listened. The FAFSA Deadline Act, introduced earlier this year, gives students and families more time to make crucial financial decisions and institutions adequate time to provide clear and transparent aid offers. We pushed Congress to move the legislation as quickly as possible, and lawmakers acted quickly—and in a bipartisan manner—to approve it.

    Passage of this legislation is a vital step toward improving access to financial aid, particularly for low-income students. Ensuring a properly functioning FAFSA form is another.

    There has been much consternation, rightfully so, about the flawed FAFSA roll out, and the consequences remain serious. All of us—the government and colleges and universities—will have to work hard to bring back the students who were not able to attend college this year because the financial aid system failed them.

    Campus leaders can do their part by ensuring that current and prospective students are well informed about the FAFSA and how to best navigate the new form and process. In its Nov. 21 announcement about the release of the 2025-26 FAFSA, the department also included an array of resources that institutions can share with students and their families and college counselors.

    In a difficult political climate, it is great to see both the legislative and executive branches of the federal government working in tandem to better support low- and middle-income students. These twin successes are extremely important and long overdue. We’ll keep urging policymakers to build on this progress in 2025, and we know that our institutions will do their part as well.

    If you have any questions or comments about this blog post, please contact us.

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