Tag: Increase

  • House Republicans Propose Significant Endowment Tax Increase

    House Republicans Propose Significant Endowment Tax Increase

    Efforts to raise endowment taxes are in motion as the House Ways and Means Committee reportedly plans to unveil changes next week that will increase rates and include more colleges.

    Education leaders have worried about such a rate increase for months. Now the GOP-led committee is expected to propose raising endowment excise taxes from 1.4 percent to up to 21 percent, depending on endowment value per student, Punchbowl News, Politico and other outlets reported. 

    The proposed endowment tax would only apply to private institutions, as it does currently.

    Under the proposed formula, institutions with endowments of $750,000 to $1.25 million per student would reportedly be hit with 7 percent excise tax. That number would climb to a 14 percent tax for colleges with endowments valued at $1.25 to $2 million per student. Colleges at the highest level with endowments of $2 million or more per student would pay 21 percent. (Currently, colleges with endowments worth $500,000 per student or more pay the 1.4 percent tax.)

    The specifics of the tax increase aren’t final and could shift before the committee’s hearing Tuesday.

    Republicans are preparing to move forward with endowment tax increases as part of a broader effort known as reconciliation to cut billions in federal spending and pay for President Donald Trump’s priorities. Other House committees have unveiled their proposed cuts for reconciliation, including a sweeping plan to upend the student loan system, but the Ways and Means bill is crucial to this process.

    GOP motivations for the tax increase appear to be twofold in that it would help fund tax cuts and serve as a punitive measure for colleges they believe have gone “woke.” In 2023, a total of 56 universities paid roughly $380 million in endowment excise taxes.

    “Seven years ago, the Trump tax cuts sparked an economic boom and provided needed relief to working families,” committee chairman Rep. Jason Smith, a Missouri Republican, said in a Friday statement. “Pro-family, pro-worker tax provisions are the heart of President Trump’s economic agenda that puts working families ahead of Washington and will create jobs, grow wages and investment, and help usher in a new golden age of prosperity. Ways and Means Republicans have spent two years preparing for this moment, and we will deliver for the American people.”

    The proposal comes amid the president’s full blown attack on higher education, which has seen the federal government clamp down on research funding, go after colleges for alleged antisemitism, take aim at diversity, equity, and inclusion programs, and attempt to deport international students.

    Since the 1.4 percent endowment excise tax was passed in 2017 during the first Trump administration higher education leaders have long worried that the president would raise it in his second term. 

    As universities increased their lobbying efforts in the early days of Trump 2.0, the potential increase to the endowment tax has been a key concern. Recent lobbying reports show that Harvard University, which has the largest endowment, recently valued at more than $53 billion, Princeton University, Northwestern University, and multiple others, have pressed Congress on the issue. (Northwestern’s chief investment officer said last week that the potential increase would be “destructive.”)

    Smaller institutions, some of which had never hired federal lobbyists before 2025, have also raised concerns about how expanding the endowment tax would harm their educational mission.

    According to an analysis from James Murphy, director of career pathways and post-secondary policy at Education Reform Now, only three universities would pay the highest rate at 21 percent – Princeton, Yale University and the Massachusetts Institute of Technology. Another 10 universities, including Harvard, would get hit with the 14 percent rate.

    An analysis published last month by the investment firm Hirtle Callaghan noted that recently proposed changes to the endowment excise tax would “significantly broaden the universe of colleges and universities that pay the tax from large, wealthy institutions to smaller, regional ones.” That analysis warned that such increases “threaten to do irreparable damage to many schools which are significantly weaker financially than the schools paying the current tax.”

    Multiple higher education associations have previously expressed opposition to the increase. 

    Last fall, American Council on Education president Ted Mitchell sent a letter to Congress, co-signed by 19 other associations, calling for the repeal of the existing endowment tax, arguing that “this tax undermines the teaching and research missions of the affected institutions without doing anything to lower the cost of college, enhance access, or address student indebtedness.”

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  • How Colleges Can Increase Transfer Student Success

    How Colleges Can Increase Transfer Student Success

    Upward transfer from a community college to a four-year bachelor’s degree–granting institution is a complicated process that leaves many students behind—particularly those from historically underrepresented backgrounds.

    Last month, the Community College Research Center at Columbia University’s Teachers College and the Aspen Institute College Excellence Program published the second edition of the Transfer Playbook, a guidebook for colleges and universities seeking to eliminate barriers to transfer and increase the number of students who start at a community college and complete a bachelor’s degree.

    The report details how colleges and universities can implement three evidence-based strategies that improve transfer and includes examples of institutions that are successful in this work.

    By the numbers: Previous surveys have shown that a majority (80 percent) of community college students aspire to a bachelor’s degree, but only 16 percent earn a bachelor’s degree within six years of starting college.

    Transfer rates are even lower for some student groups, including those from low-income backgrounds, adult learners and Black and Hispanic students, according to the report.

    With the cost of higher education climbing, many students consider community college an affordable route to a postsecondary credential. However, little progress has been made over the past decade in increasing transfer rates from two-year to four-year institutions, according to the report’s authors.

    “Transfer and bachelor’s attainment rates for students who start in community colleges have remained virtually unchanged since we started tracking transfer in 2015,” they write.

    The playbook identifies colleges and universities that have achieved better outcomes for various groups using some of the recommended practices. None of the institutions or partnerships exhibited all the practices. “However, we hypothesize that by combining the exemplars’ efforts into a comprehensive, idealized framework, higher education leaders and practitioners can adapt it to meet their students’ needs and achieve strong outcomes for all—and at scale,” the report says.

    Put into practice: Researchers identified a few consistent themes that set innovative institutions apart, which include:

    • Leveraging proximity. Research shows students are more likely to enroll in college based on proximity, so creating local pathways between community colleges and four-year universities can support students who want to stay in the region.
    • Providing empathy in high-stakes decisions. Missteps in course, major or transfer destination selection can have financial and opportunity costs for a student, which can impede their attainment or push them to stop out entirely. Effective colleges offer personalized support through staff or create tools that provide guidance in a timely manner.
    • Establishing universal systems and initiatives. Some programs provide strong outcomes for historically underrepresented groups but are not large enough to reach students at scale. Exemplars instead use these programs as pilots to test effective measures and then scale them.
    • Achieving support from leaders. Grassroots efforts can help move the needle, but recognition, elevation and investment by senior leadership allow work to scale in sustained ways, regardless of staffing turnover.

    According to the report, the most effective strategies for creating sustainable transfer student success at scale are:

    • Prioritizing transfer at the executive level. A key driver in systemwide change was community college and four-year presidents who understand the central role of transfer student success in their respective institutional missions and business goals. This top-down approach allows for allocation of resources, division mobilization and partnerships across colleges, which often benefit the local community and workforce. This also allows for end-to-end redesign of the transfer student experience, and establishment of systems and processes.
    • Aligning programs and pathways. Colleges that create and regularly update term-by-term, four-year maps for each degree program can promote learning and ensure students are making significant progress toward a bachelor’s degree, such as completing college-level math and English and major-related courses. These maps should also prioritize accessibility and flexibility, understanding that student needs and priorities may shift and the way they complete courses may change. Some students may need exploratory curricula to help them identify their educational and career goals, so embedding this instruction early is also paramount.
    • Tailoring advising and nonacademic supports. “Research indicates that about half of the community college students nationally who intend to transfer do not access transfer services,” the report says. Instead, institutions should put in place inevitable advising, engaging transfer students before, during and after their transition to a university. Advisers should receive professional development and training that centers the student experience and equips them to engage with individual students and their respective circumstances. Once students land at their four-year institution, creating systems and supports that uplift the transfer experience and inspire feelings of belonging is also critical.

    Researchers call out a variety of campuses for their work, including George Mason University and Northern Virginia Community College’s ADVANCE program, Tallahassee State College’s transfer pathway work, and Arizona Western College and North Arizona University’s strategy to increase bachelor’s attainment in their two-county region.

    Seeking stories from campus leaders, faculty members and staff for our Student Success focus. Share here.

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  • Counslr Launches in New Mexico and Illinois; Expands Footprint in New York to Increase Access to Mental Health Support

    Counslr Launches in New Mexico and Illinois; Expands Footprint in New York to Increase Access to Mental Health Support

    NEW YORK, NY – Counslr, a leading B2B mental health and wellness platform, announced today that it has expanded its footprint into the State of New Mexico starting with a partnership with Vista Nueva High School, Aztec, NM; and into the State of Illinois starting with a partnership with Big Hollow School District, Ingleside, IL. These initial partnerships will empower students and staff to prioritize their mental health by enabling them to access unlimited wellness resources and live texting sessions with Counslr’s licensed and vetted mental health support professionals, who are available on-demand, 24/7/365. By increasing accessibility to Counslr’s round-the-clock support, Vista Nueva and Big Hollow aim to bridge gaps in mental health support for students and staff, enabling those who previously did not or could not access care, whether due to cost, inconvenience, or stigma, to receive the support they desire.

    1 in 6 youth suffer from a mental illness, but the majority do not receive mental health support due to substantial obstacles to care. Additionally, mental health is even a bigger challenge in rural America due to unique barriers, including fewer providers resulting in longer wait times or insufficient access to crucial mental health services. This resource scarcity underscores the urgency for additional resources and innovative solutions to bridge this critical gap in mental health care for school communities.

    “We are happy to be able to offer students another tool that they can use to support their mental well-being. Knowing that students have been able to speak with a professional outside of school hours helps us know this app was needed and is useful,” states Rebekah Deane, Professional School Counselor, Vista Nueva High School. “We hope this tool also assists students in learning how to navigate systems so that when they graduate high school they know these options exist and they can continue to seek out support when necessary.”

    As factors such as academic pressures, social media influence, burnout and world events contribute to heightened stress levels and mental health challenges, schools throughout the country are recognizing the growing need to offer more accessible resources and preventative mental health services to both students and staff.

    “Counslr provides an extremely easy-to-access platform for those who otherwise may not seek the help they need, and we are very excited to join Counslr in this partnership. We are all very well aware of the impact that technology has had on the mental health of our students and we feel that Counslr can meet our students in a setting they are comfortable with,” states Bob Gold, Big Hollow School District Superintendent. “Outside of our students, we are thrilled to be able to offer this service to the amazing adults who work with our students every day. There are so many families dealing with some sort of trauma, and the life of an educator is no different.  These adults tend to give so much of themselves to their students, so we strongly feel that our efforts here to join with Counslr is our way of providing an opportunity for our educators to focus on their own mental health.”

    In addition to the geographic expansion,Counslr has also expanded its existing footprint in states like New York, most recently partnering with the Silver Creek Central School District to support its students and staff.  

    “We know mental health needs are on the rise, for students and adults.  To me, Counslr is a resource our students and staff both deserve,” states Dr. Katie Ralston, Superintendent, Silver Creek Central. “In the beginning stages at Silver Creek Central, it has proven to be an asset, as it offers access to everyone on the spot, any day, for any situation.”

    “Supporting diverse populations of students and faculty across the country clearly illustrates that mental health knows no boundaries,” said Josh Liss, Counslr CEO. Adding that, “With 86% of Counslr’s users being first-time care seekers, we strive to reach these silent sufferers who need help, but do not or cannot access it, no matter where they are located.”

    ABOUT COUNSLR

    Counslr is a text-based mental health support application that provides unlimited access to robust wellness resources and live texting sessions with licensed professionals, 24/7/365. Users can access support on-demand within two minutes of opening the app, or by scheduled appointment. Through real-time texting, users enjoy one-on-one, private communication with a licensed counselor that can be conducted anytime, anywhere. Counslr was designed to help individuals deal with life’s day-to-day issues, empowering individuals to address concerns while they are “small” to help ensure that they stay “small”. Counslr partners with organizations of all shapes and sizes (companies, unions, nonprofits, universities/colleges, high schools, etc) so that these entities can provide Counslr’s services to their employees/members/students at no direct cost. For more information, please visit www.counslr.com.

    eSchool News Staff
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