Free Tuition Still Leaves Students With $20,000 To $25,000 A Year In Costs, Brookings Says

More than 870 colleges now advertise free tuition for some students, but a new Brookings Institution analysis finds most of these programs repackage existing financial aid rather than add new money. In a new research brief, economist Phillip Levine concludes that the biggest benefit of free tuition may be marketing: it tells families in plain terms that they won’t pay the sticker price that only 1 in 8 students actually pays.Levine matched a Washington Post database of free tuition policies against federal IPEDS data and net price calculator results from 200 randomly selected four-year colleges. Of the 2,994 colleges in his analysis, 871 (29%) offer free tuition to some group of students, and those schools enroll about 42% of all students, according to Brookings. The programs range from campus-level offers like Rice University’s expanded $200,000 threshold to statewide programs such as New York’s Excelsior Scholarship.

The University of Arizona announced that it will freeze tuition and mandatory fees for every undergraduate and graduate student for fall 2027. Resident undergraduates will have gone four years without a tuition increase, and the freeze extends to nonresident undergraduates and all graduate programs for the first time.For families watching college costs rise three times faster than inflation, a public flagship keeping its price steady gives them one less thing to plan around.The plan still needs a final vote. The Arizona Board of Regents will review the full tuition, fees, housing and meal plan proposal at its November meeting, so the rates below are proposed rather than final. Families can see how the state’s three public universities fit with other Arizona financial aid and college cost options while the vote is pending.

The University of California’s Blue and Gold Opportunity Plan covers systemwide tuition and fees for California residents with family incomes under $100,000 who qualify for financial aid.For students entering UC in 2026-27, that’s worth $15,588 a year, made up of $14,202 in tuition and a $1,386 student services fee, according to UC’s 2026-27 fee schedule.The plan applies at every undergraduate UC campus, including Berkeley and UCLA, and puts UC on the list of colleges offering free tuition below set income limits.

Penn State released final recommendations from its Academic Portfolio and Program Review on October 12, 2026. The university recommends closing 47 of its 403 bachelor’s and associate degree programs, joining a wave of universities cutting jobs and degrees in 2026.The 47 programs enroll 784 students, about 1.1% of Penn State’s 68,390 undergraduates. That’s down from the preliminary list released in April, which flagged 49 programs and 906 students. Students deciding whether to stay or transfer to another college now have a final list to work from.

The Office of the Comptroller of the Currency fined Bank of America $750 million on October 13, 2026, for failures in its anti-money laundering program. It’s the largest civil money penalty in OCC history, and it hits the bank behind millions of everyday Bank of America savings and checking accounts.The OCC penalty is one part of a larger Treasury action. FinCEN, the Treasury unit that recently ordered banks to report student aid fraud, assessed a $1.2 billion penalty that credits the OCC’s $750 million. The Office of Foreign Assets Control added an $11.6 million settlement over 475 apparent sanctions violations, according to the Associated Press.According to a statement from Treasury Secretary Scott Bessent, “Financial institutions are on the front lines of protecting our economic and national security. When a bank of this size fails to meet its anti-money laundering and sanctions obligations, the consequences extend far beyond its own walls, exposing the entire U.S. financial system to significant illicit finance risks.“

Consumer prices rose 0.6% in September on a seasonally adjusted basis, according to the Bureau of Labor Statistics September CPI report released October 14, 2026. Over the past 12 months, the Consumer Price Index climbed 3.7%, up from 3.4% in August. The report is also the last input for Social Security’s 2027 COLA and the next I bond interest rate.Gasoline was the biggest driver of the increase. The gas index rose 9.1% in September and accounted for more than half of the monthly increase. Energy prices overall are now up 20.4% from a year ago. Core inflation, which strips out food and energy, rose 0.3% for the month and 2.6% for the year.

The Social Security Administration announced a 3.6% cost-of-living adjustment (COLA) for 2027 on October 14. The increase follows September consumer price index data, which the Bureau of Labor Statistics released the same morning.Nearly 72 million Social Security beneficiaries get the raise starting in January 2027. About 7.3 million SSI recipients see higher payments on December 31, 2026.The 2027 raise is the largest since 2023, and it runs 0.8 percentage points above the 2.8% COLA for 2026. The Committee for a Responsible Federal Budget (CRFB) notes it also beats the Social Security Trustees’ recent projection by 0.9 points, a sign of how fast inflation ran this year.

A growing group of states has turned the FAFSA into a high school graduation requirement. The idea, known as “universal FAFSA,” is simple: every senior either files the federal aid application or formally opts out before getting a diploma.The label hides several variations of the policy. Some states withhold a diploma from a student who does neither, while others only require schools to track who filed.Here’s where every state stands heading into the 2027-28 FAFSA cycle, which states walked their policies back, and what the data says about whether any of it works.

Sen. Jeff Merkley introduced the Homeownership Promise Act (PDF File) on September 23, 2026, a bill that would have the federal government match first-time homebuyers’ down payment savings at a 5-to-1 rate. A saver who puts away the $10,000 maximum would receive up to $50,000 from the Department of Housing and Urban Development (HUD), for a combined $60,000 at closing. Sen. Ron Wyden is the lone cosponsor, according to Merkley’s announcement.The new Homeownership Promise Accounts would function as savings accounts with a large federal grant paid out on purchase day. The concept resembles the match Foyer offers on home down payment savings and the $1,000 federal Saver’s Match coming to retirement accounts in 2027, but at a far larger multiple.The bill defines an “eligible family” as one or two first-time buyers, so a couple buying together would share one account and one $60,000 cap rather than each opening their own (another marriage penalty).

Two former for-profit college students filed a proposed class action against the U.S. Department of Education on September 24, 2026, alleging the agency keeps telling credit bureaus they owe federal student loans it cancelled years ago. The case, Woods v. U.S. Department of Education (No. 1:26-cv-3335), was filed in the U.S. District Court for the District of Columbia by the Project on Predatory Student Lending (PPSL), the legal group behind the Sweet v. Cardona borrower defense settlement. The lawsuit seeks damages under the Fair Credit Reporting Act.At issue are the Department’s group discharges that were announced by the Biden Administration between April 2022 and January 2025, which covered more than 1.5 million borrowers and $23.4 billion in loans tied to schools where the agency found widespread fraud and misconduct.Those schools, including Corinthian Colleges, ITT Tech, the Art Institutes and Ashford University, appear on our for-profit college loan forgiveness list. PPSL estimates, based on public data, that the Department is still reporting $4.6 billion of that cancelled debt as owed, affecting more than 300,000 people. This aligns with a lot of the comments that we saw on our videos reporting on this, where borrowers reported that their loans are still not showing as canceled.