The countdown to the July 1 implementation of the One Big Beautiful Bill Act (OBBBA) has revealed significant hurdles in higher education. As financial aid offices rush to adapt within a six-week timelinestudents and institutions alike are feeling the strain. Meanwhile, the financial crunch on campuses is intensifying, affecting even the most prestigious universities.
This week, we delve into the critical issues shaping higher education and student finances, highlighting the impacts on medical, dental, and veterinary students, as well as the financial restructuring at elite institutions like Harvard and the challenges faced by small colleges in Pennsylvania.
Loan Disbursement Delays and Incorrect Cap Notices for Health Professional Students
Graduate students in medical, dental, and veterinary programs are encountering financial aid delays and miscommunications as the OBBBA rollout progresses. For students starting summer classes, the transition has been particularly chaotic. Reports indicate that some students have received inaccurate notices about hitting updated borrowing limits, despite being grandfathered in. Others have faced delayed loan disbursements, which have pushed past tuition due dates and orientation supply windows.
These issues underscore the importance of double-checking financial aid notices against enrollment records. Students who have been incorrectly flagged as capped should contact their financial aid offices immediately, as manual intervention is often required to resolve these issues. Additionally, health professional students should budget for $1,500 to $4,000 in first-year supply costs and have a backup plan in case loan disbursements are delayed.
Harvard’s Faculty of Arts and Sciences Undergoes Major Restructuring
On June 2, 2026Harvard’s Faculty of Arts and Sciences laid off three divisional administrative deans as part of a sweeping summer restructuring aimed at closing a $365 million structural deficit. This move is the first step in a plan developed with McKinsey & Companywhich could result in up to 25% of FAS staff being laid off. The deficit is primarily driven by the federal endowment tax hike imposed by Congress last year and deferred capital expenses.
The layoffs at Harvard serve as a warning for parents and students evaluating prestigious private universities. The federal funding environment is squeezing institutions that families have long assumed were financially bulletproof. Endowment size alone does not indicate a school’s operational stability over the next four years. Prospective students and their families should ask specific questions about hiring freezes, program cuts, and graduate program contractions during campus tours and admitted-student events.
Ursinus College Faces Significant Staff Reductions Amid Financial Struggles
Ursinus Collegea small private liberal arts school about 30 miles northwest of Philadelphiahas laid off 15% of its staff this week as part of a $10 million budget reduction. The college had already cut 29 faculty positions earlier this year. Enrollment has fallen 11% over the past four years, reflecting the broader challenges faced by small, tuition-dependent liberal arts colleges in the Northeast and Mid-Atlantic regions.
Ursinus is not alone in its financial struggles. Last month, the AAUP chapter at nearby Muhlenberg College warned that the school’s $10 million budget deficit would also lead to layoffs. The pattern is clear: small liberal arts colleges facing enrollment declines of 10% or more over the past few years are running out of room to cut. Prospective students and their families should carefully evaluate the financial stability of these institutions by reviewing IRS Form 990, Moody’s or S&P credit ratings, and enrollment trends over the past five years.
Students already enrolled at financially stressed schools should ensure their credits are transferable and have a backup plan in case their program is cut. Our 2026 college closures tracker provides valuable insights into the current landscape of higher education.
