IRS Proposes Ending Tax-Exempt Status For 18,000 Private Schools Over Race-Based Policies

The Treasury Department and IRS released proposed regulations that would deny 501(c)(3) tax-exempt status to any private school that “adopts, maintains, or enforces” a policy discriminating on the basis of race, color, or national or ethnic origin, including policies designed to benefit minority students.The proposed rule focuses on admissions, scholarships, student loans, athletics, and every other school-administered program. The agencies estimate it could affect as many as 18,000 private schools and roughly 750,000 students who may qualify for race-based scholarships. This is happening as the Trump Administration is pushing back against race-conscious education policy.“Schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature,” Treasury Secretary Scott Bessent said in the announcement, first reported by the Daily Caller.The regulations would apply to taxable years beginning after May 31, 2027, which the IRS says gives schools time to rewrite policies. This makes sense after the policy debate that came when the administration tried revoking Harvard’s tax-exempt status in 2025.

Both fall quarter sections of MATH 2 at UC San Diego are full, and 175 students are sitting on waitlists. A screenshot of the campus booking system posted this week to the r/UCSD subreddit shows one 180-seat section at zero availability with 99 waitlisted, and a second 10-seat section with 76 more waiting. That puts roughly 365 incoming students in or chasing a class that awards no degree credit. This aligns with what the college reported last year about collapsing freshman math skills.MATH 2 sits below precalculus. The UC San Diego course catalog describes it as “Introduction to College Mathematics,” a four-unit class covering linear relationships, exponents and polynomials, rational expressions, and basic geometry and trigonometry. However, most people understand it’s a catch-up class designed to cover math topics generally addressed in Grades 6-12.Students land there by scoring low on the school’s Math Placement Exam. Since UCSD and other UC schools don’t use standardized tests for admissions, students are required to take a math placement exam before enrollment to truly understand what grade level of math they should be going into. The grade inflation that pushed high school GPAs upward has simply magnified the results of this exam.

Texas State University is doubling the income limits on its free tuition program. Starting with the Fall 2027 entering class, first-time freshmen who graduate in the top 25% of their high school class and have a family adjusted gross income of $100,000 or less will qualify for free tuition and mandatory fees under the expanded Bobcat Promise.That makes Texas State a part of a growing list of colleges that have made tuition free for qualifying families.The university expects the expansion to benefit roughly 3,400 incoming freshmen. Students from families earning $50,000 or less remain eligible regardless of class rank, keeping the program’s original focus on Texas students with the greatest financial need.

Bill Gates published a 6,000-word essay on the AI transition, calling it “one of the most turbulent times in human history” and arguing the world has no real plan for it. He organizes the essay around three key risks (permanent job losses, AI-empowered bad actors, and damage to how kids develop and their education), at a moment when AI anxiety is already boiling over on campuses.The line that should stop educators cold: Gates writes that the same tool that will allow people to learn more than ever “could also lead to many people learning less.”He points to a preliminary survey that associated heavier AI use with weaker critical thinking, with the effect strongest among younger users.

Arizona State University has launched a Bachelor of Arts in Content Creation through its Walter Cronkite School of Journalism and Mass Communication, available at its downtown Phoenix campus, online, and through ASU Local. Coursework covers video and podcast production, audience analytics, brand voice, monetization, copyright, plus hands-on work through a Los Angeles Content Studio and brand content projects.Critics immediately branded it the “influencer degree,” reviving the debate over whether college is worth the investment at all.According to reporting from the Associated Press, the curriculum overlaps heavily with ASU’s existing mass communication degree, with the main difference being specialized electives in podcasting, studio production, and on-camera presence.ASU isn’t first, either: St. Bonaventure University announced a content creation major last winter, and Syracuse, Quinnipiac, and Colorado State offer minors. It’s part of a broader push by schools to add career-coded majors as more students choose work over college.

A new NBER working paper finds that Tennessee Promise, the nation’s first statewide free community college program, increased college enrollment, boosted degree completion, raised early-career earnings, and generated enough new tax revenue to more than cover its cost. The researchers estimate the program’s marginal value of public funds is infinite, meaning every public dollar spent produced positive benefits at no net cost to the government.The study, from economists at the University of Tennessee, Saint Mary’s College of California, and the Tennessee Office of Evidence and Impact, tracks the program from its 2009 single-county pilot in Knox County through statewide rollout in 2015. Tennessee’s model became the template for the more than 20 states that now offer some version of free community college, most using the same last-dollar structure.The program’s design is simple by financial aid standards. Any Tennessee high school graduate qualifies regardless of income, grades, or field of study, as long as they apply on time, complete mentoring and community service requirements, and enroll at a community college or college of applied technology the fall after graduation. That simplicity make it easy for students to benefit.

Four Senate Democrats want the Department of Education to provide answers on how it spent a $1 billion student loan administration fund created by last year’s One Big Beautiful Bill Act. In a September 2 letter to Education Secretary Linda McMahon (PDF File), Senators Elizabeth Warren (D-Mass.), Jeff Merkley (D-Ore.), Cory Booker (D-N.J.), and Chris Van Hollen (D-Md.) say the agency has already spent roughly $216 million from the fund without explaining what it spent them money on. Meanwhile, the number of borrowers in default has climbed to a record high.The $216 million figure comes from the Department of Education’s own Fiscal Year 2027 budget request, which reports that amount obligated as of the start of FY2026 and projects that more than $450 million will still be unspent when FY2027 begins. The senators note that Section 82005 of the OBBBA requires the money to go toward “administrative costs” of the federal student loan program, including servicing, but built in no reporting or oversight requirement.

Rep. Suzanne Bonamici (D-Ore.) reintroduced the Streamlining Income-driven, Manageable Payments on Loans for Education (SIMPLE) Act on September 2, 2026, with six House Democratic cosponsors. The bill (H.R. 10220) would require the Department of Education to contact federal borrowers once they are 31 days past due, show them what they would owe under every income-driven repayment plan they qualify for, and then move them into the lowest-payment plan automatically if they are still delinquent at 75 days.The bill has been sent to the House Education and Workforce Committee and the Ways and Means Committee. NASFAA reports a similar bill was first introduced in 2016 and last reintroduced in 2024, and this version is largely unchanged apart from updates that add the Repayment Assistance Plan (RAP) to the list of eligible income-driven plans.

College tuition refunds are rare. Many colleges only give a full refund if you withdraw before the first day of class, and most stop refunding anything at all within about a month of the start date. Check your own school's schedule now, because the window closes faster than most families expect. If a withdrawal is on the table, the financial impact of dropping out of college goes well beyond the lost semester.The numbers make this worth taking seriously. For 2025-26, the College Board puts average published tuition and fees at $11,950 for in-state students at public four-year schools and $45,000 at private nonprofit four-year schools. Add housing, food, and other costs and the average full budget is $30,990 at a public four-year school and $65,470 at a private one. If you're wondering when those bills come due, see when you actually pay for college.That's a car-sized check written every semester. Students and parents footing the bill want some protection if something goes wrong, and most don't realize how little protection the school's own refund policy provides. That's a big reason tuition insurance has become a standard line on more college bills.

College athletes are getting paid, and many of them don’t know what to do with it to maximize their long term wealth. The money arrives with no tax withheld, no benefits attached, no HR department explaining anything, and a set of rules that punish anyone who assumes a paycheck is a paycheck.The window is short, too. NCAA data puts the odds of a draft-eligible football player getting drafted at 1.4%, and men’s basketball at 1.0%, while the NCAA’s own GOALS research found roughly 74% of FBS football players believe they’ll go pro. That gap is where the financial damage happens.The money comes from selling their Name, Image, and Likeness, or NIL. And it’s big business in college sports today.Here’s how the money works, what it costs, and what to do with what’s left.