This week’s stories share a common thread: New federal student loan rules taking effect July 1 are going to force real decisions for graduate students, parents, faculty and borrowers right now. As the private student loan market prepares to nearly double in size, one university is moving in the opposite direction. Cutting Tuition, faculty buyouts have become a sector-wide trend, and PAYE is increasingly being phased out for borrowers opting out of SAVE.
A quick look at the most important stories shaping higher education and student finance this week through May 8, 2026.
🎓 Top news at a glance
- The private student loan market is set to expand rapidly as new federal limits go into effect.
- Campbell University has reduced adult and online undergraduate tuition to $400 per credit hour.
- As the budget gap among colleges narrows, faculty trading is becoming more widespread in higher education.
- Borrowers are urged to switch to PAYE before July 1 or lose access completely.
1. Private student loan market to nearly double under new federal limits
With the Department of Education issuing final rules for the One Big Beautiful Bill Act student loan changes, attention has turned to what fills the gap. Higher education expert Mark Kantrowitz estimates that the volume of private student loans could nearly double from its current ~$10 billion per year as GradPlus ends on July 1 and graduate borrowers reach new student loan borrowing limits.
The problem is that private student loans are credit-underwritten. One Analysis (PDF file) Protect Borrowers and The Century Foundation found that more than 40% of Americans will likely be denied most private student loans. Many lenders require a minimum credit score of 670 and income of $35,000, and the average credit score for 20-year borrowers is 662.
➡️ Effect: Graduate and professional students should plan now. If you’re starting a program this fall, run the numbers on private loans early – co-signer requirements, variable rates, and limited death/disability discharges make these a very different product from federal loans. Parents and grandparents thinking about co-signing should understand that these are 10 to 15-year commitments that may outlive the borrower.
2. Campbell University cuts adult and online undergraduate tuition by $400 per credit
Campbell University announced that it is reducing its adult and online graduate tuition rates to $400 per credit hour effective May 18 during the summer term. The move is aimed squarely at working adults and military-affiliated students, and it goes against the broader tuition-hike trend across most of higher education.
For context, according to the College Board, the average tuition increase at four-year public schools this year was 2.9% for in-state students and 3.4% for out-of-state students. Campbell’s move is one of the more meaningful affordability announcements of the spring, especially for non-traditional students who often pay more per credit than full-time undergraduates.
➡️ Effect: Tuition cuts are rare, but when they happen it’s noticeable. Adult learners and military families considering online degree programs should include Campbell in their comparison. The bigger story is that schools are starting to compete more aggressively on price for the adult learner class as traditional 18 to 22 enrollment softens – a trend worth watching.
3. Faculty buying and selling is spreading across higher education as budget gaps at colleges close.
Forbes is calling 2026″Year of College Faculty Purchase” Retirement and separation incentives are starting at Syracuse, Kenyon, North Texas, Rowan, ECU, The New School and Washington University in St. Louis. Syracuse offered voluntary retirement to 175 professors after eliminating 84 programs, which included payouts equal to one year’s base salary and up to $15,000. The New School plans to lay off about 15% of its staff and faculty because It is working to close a $48 million deficit.
The drivers are familiar: stagnant or declining enrollments, cutbacks in federal funding, declining international student numbers, uncertain state support, and increased operating costs. Hampshire College sent layoff notices to 203 faculty and staff ahead of its closure in 2026, and Anna Maria College announced its own closure after Massachusetts flagged it as at risk for closure.
➡️ Effect: For families choosing college, financial stability has gone from being a “nice to know” thing to a real factor in the decision. Parents and students should look at enrollment trends, endowment health, and whether the school has announced program cuts or buyouts before committing – especially at smaller private liberal arts colleges. For already enrolled students, see if your major or department falls on the cut list, as teaching plans can significantly reduce deadlines.
4. Borrowers urged to switch to payments before July 1 or lose access
College Investor reported this week that borrowers opting out of SAVE need to act fast if they want a payment — often the lowest payment option left after SAVE is gone. Under the final ED rules, PAYE will close to new applicants with effect from July 1.
This matters most for the approximately 7 million borrowers who are still sitting in SAVE forbearance. Once PAYE is discontinued, the remaining options are IBR (with a higher repayment percentage for borrowers who took out loans before July 2014), the new Repayment Assistance Scheme launching on 1 July, or the tiered standard scheme.
➡️ Effect: If you’re on SAVE and haven’t chosen your next plan, this is the action item of the month. enter into studentaid.govRun the loan simulator, and submit an IDR application. Don’t wait for your servicer to tell you what to do – by the time the notices arrive, your processing window may already be very tight.
