What Trump’s ‘big beautiful bill’ means for higher education
For years, a growing number of students have been considering alternatives to four-year education. The trend now towards a two-year program or even a shorter-term certificate – also called “leaving university” – gaining strength.
Ballooning college costs and the student loan debt that comes with them are partly to blame. New borrowing limits for 2026 under President Donald Trump’s “big, beautiful bill” are another factor. Additionally, students are increasingly seeking job training and career-focused pathways to gain a foothold in today’s softening labor market.
Period “leaving university“first emerged nearly a decade ago to describe the rise of college alternative programs. Experts say the change this year will be dramatic.
According to a recently published report, the fall enrollment rate at public universities increased by 3 percent compared to the previous academic year, while the increase at four-year public universities was 1.4 percent. National Student Clearinghouse Research Center. Enrollment at private four-year nonprofit institutions fell 1.6% during the same period.
“There is a slight increase in overall enrollment, but the real story is the change across sectors,” Matthew Holsapple, senior research director at the National Student Clearinghouse Research Center, said in a statement. “While community colleges and state universities are gaining ground, private colleges are in decline, a clear departure from the broad-based growth of recent years.”
Golden West College students march toward the GWC Student Union in Huntington Beach on Wednesday, Sept. 3, 2025.
Leonard Ortiz | Orange County Register | MediaNews Group | Getty Images
According to DeRionne Pollard, President and CEO of American Community Colleges, the benefits of a two-year degree, professional program or other type of certification are “amplified in an environment of economic uncertainty.”
Of course, the job market for new graduates is more turbulent than it was years ago.
As the rise of artificial intelligence reshapes the workforce, entry-level jobs for startups are dwindling. Some experts say this is the beginning of an AI-induced white-collar recession.
New graduates face a tough job market
Employers are projecting only a 1.6% increase in hiring for the Class of 2026 compared to the Class of 2025. National Association of Colleges and Employers. This year, more employers are focusing on job applicants’ skills rather than academic degrees or GPA. NACE’s Business Outlook 2026 survey found.
Other research also shows that shortages of skilled tradesmen are increasing job opportunities and wages in industries such as nursing, manufacturing and construction. Average salaries for some in-demand trade jobs are well above this $100,000 per yearIndeed, according to the job site.
How could the ‘big beautiful bill’ affect higher education?
Amid a tough job market, Trump’s “The big, beautiful bill that Congress passed last July would herald broader changes in higher education.
The legislative package places, for the first time, a cap on the amount of money students and their families can borrow from the federal government for college and graduate education. new borders The total lifetime borrowing limit on federal student loans is $257,500.
Tricia Scarlata, head of education savings at J.P. Morgan Asset Management, said those limits would likely prompt families “to opt for more cost-effective pathways, such as starting at a two-year college and then transferring to a four-year institution or choosing public universities in the state over private colleges.”
“Now more than ever, weighing return on investment is imperative, not optional,” said Derek Brainard, education financial director at the nonprofit AccessLex Institute.
Further fueling interest in “extracollege”, the “big beautiful” law also includes new provisions for short-term Pell Grants. Starting in mid-2026, students enrolled in workforce training programs at public universities will be eligible for Pell funding, a need-based aid program for low-income students.
“The creation of Workforce Pell Grants will increase interest in very short programs that are inexpensive and closely tied to jobs,” said higher education expert Mark Kantrowitz. The grants are worth up to $7,395 for the 2025-26 academic year. Previously, these funds were only available to undergraduate students seeking degrees.
“The smartest move students can make today is to plan sensitively: research scholarships, compare programs, and avoid assuming federal loans will fill every gap,” Brainard said. “Students should crunch the numbers early, understanding program costs, federal limits and long-term borrowing capacity before committing.”
