The Impact of the One Big, Beautiful Bill on Higher Education: An AI Assignment

I’ve been a fan of artificial intelligence (AI) for over two decades. Prior to the announcement of ChatGPT to the world, I wrote occasionally about books and papers that touted AI’s potential impact on education and the workforce. After that, I tried to keep up with the weekly revelation of LLM-related products.

For more than two years, I have continued to check on advances in generative AI products, particularly related to reduced hallucinations and inclusion of valid references. I try to find ways to use AI at work, and I discuss with a group of higher ed and K-12 colleagues how they incorporate AI in their daily activities.

After the One Big, Beautiful Bill was passed by Congress and signed by President Trump, the number of articles and opinion pieces about its impact on higher education proliferated. I thought it was time to try to see (a) how current the more popular AI tools are and (b) how creatively they think about the collective news.

I decided to give Stanford’s Storm, Claude, Gemini, and ChatGPT the same prompt: How will the One Big Beautiful Bill impact higher education institutions? I’ve organized their responses in sequence.

Anyone familiar with these tools knows that the response times are unbelievable. The typing of the prompts as well as the responses for all four tools took less than 10 minutes. Reviewing the responses and writing this article took much, much longer. It’s easy to see how tempting it is to pass off the work as your own.

Stanford Storm’s Response

Background

The One Big Beautiful Bill (OBBB) represents a significant shift in U.S. tax policy and federal support for education, particularly affecting higher education institutions. Introduced by the Senate Finance Committee on June 16, 2025, the bill was designed to address expirations from the 2017 Tax Cuts and Jobs Act and included sweeping reforms across various sectors, including education [1]. After intense negotiations and minor adjustments, the OBBB was passed by the Senate on July 1, 2025, followed by the House of Representatives on July 3, and was signed into law by President Trump on July 4, 2025 [1][2]. One of the critical components of the bill is its long-term commitment to several cornerstone community investment tools, such as the Low-Income Housing Tax Credit and Opportunity Zones, which are intended to provide investors and developers with stability as they engage in multi-year projects in underserved areas [3]. However, this stability comes alongside the phasing out of numerous clean energy credits, which has sparked debate regarding the implications of these cuts for the environment and sustainability [3]. In terms of higher education, the OBBB is seen as potentially the closest Congress has come to reauthorizing the Higher Education Act since its last comprehensive update in 2008. The bill introduces a series of policies aimed at increasing access to education while simultaneously imposing new limitations on financial aid programs [4][2]. For instance, starting in July 2026, Pell Grant recipients will be allowed to use their awards for educational programs lasting between eight and fifteen weeks, a move aimed at making education more accessible to adult learners already in the workforce [6]. However, critics argue that the financial aid reforms may ultimately raise costs for low- and moderate-income students, countering the bill’s stated goals of affordability and accessibility [6][8].

Positive Impacts

Enhanced Affordability and Access

The One Big Beautiful Bill introduces the SAVE plan, which significantly reduces monthly payment amounts for borrowers and shortens the time to forgiveness to as little as 10 years for those with lower debt levels. This plan can result in tens of thousands of dollars in savings over the life of the loan for borrowers, making college more financially accessible and encouraging higher enrollment rates among prospective students who might otherwise be deterred by the cost of higher education [5]. By easing the burden of student debt, the SAVE plan has the potential to enhance overall economic productivity as a greater number of individuals can pursue postsecondary education.

Economic Benefits

The broader economic implications of the SAVE plan are noteworthy. By allowing borrowers to retain more disposable income due to reduced repayment obligations, there is an expected increase in consumer spending. This consumption boost can have a substantial positive impact on local economies, as borrowers contribute to community financial health through increased spending [5]. Although the macroeconomic effect may be modest in relation to the overall U.S. economy, the localized impacts on individual financial security and community welfare can be significant.

Increased Grant Aid Accessibility

The bill also aims to strengthen federal grant programs, such as the Pell Grant, which assists students in covering college costs without requiring repayment. Notably, starting in July 2026, Pell Grant recipients will be able to use their awards for shorter educational programs, thus broadening access to higher education and facilitating career transitions for working adults [6]. Furthermore, adjustments to the eligibility criteria for Pell Grants seek to streamline support for low-income students, potentially increasing college enrollment rates among those historically underserved by the education system [7].

Stimulating Workforce Development

The provisions related to short-term educational programs are especially crucial in today’s job market. By encouraging the completion of shorter programs that align with workforce needs, the legislation aims to help individuals acquire essential skills more quickly, thereby enhancing employability and contributing to a more skilled workforce [6]. This approach addresses concerns regarding the relevance of traditional college degrees in a rapidly evolving economy, aligning education with labor market demands.

Financial Aid Adjustments

The One Big Beautiful Bill also includes reforms to federal financial aid calculations, which aim to better reflect the actual costs of attendance, especially for students at higher-cost institutions. These changes could help bridge gaps between financial assistance provided and actual educational expenses, thus supporting students who might otherwise rely heavily on loans [7]. Enhanced scrutiny of return on investment for educational programs may also prompt institutions to reassess their tuition pricing strategies and financial aid offerings, ultimately benefiting students through improved financial support systems [12].

Challenges and Criticisms

The One Big Beautiful Bill (OBBBA) has faced significant challenges and criticisms, particularly regarding its impact on higher education and student loan programs. Critics argue that the legislation could fail to adequately support students and jeopardize the future of public education in the United States [9]. Concerns have been raised about the implications of proposed changes, with leaders in the education sector warning that if these changes are implemented, they may hinder students’ abilities to succeed and exacerbate financial barriers to education [2].

Financial Implications

A major criticism of the OBBBA pertains to its financial ramifications, particularly regarding income-driven repayment (IDR) plans. The costs associated with these plans have historically been underestimated, which has led to a significant increase in projected expenses over the years. For example, a 2022 Government Accountability Office report indicated that the Department of Education’s cost estimates for IDR programs had ballooned by approximately $70 billion since 2013 due to evolving economic assumptions and borrower behaviors [10]. This miscalculation not only affects taxpayer funding but may also influence students’ decisions to pursue higher education, particularly when the potential returns are unclear [10].

Inefficiencies in Implementation

Moreover, there are substantial inefficiencies in how the IDR programs have been administered. Critics point to a lack of accurate record-keeping, which has resulted in numerous errors in payment counts and guidance for borrowers. Reports have indicated that loan servicers have sometimes directed borrowers towards forbearance rather than the more beneficial IDR options for which they may qualify, leading to accruing interest and escalating balances [10]. As educational institutions navigate these changes, they may need to seek partnerships with private loan companies to facilitate enrollment and better support their students [4].

Digital Organizing Challenges

In addition to the financial issues, the OBBBA highlights a broader struggle within the nonprofit sector and progressive movements to adapt to modern digital organizing strategies. Experts assert that to effectively influence legislation, nonprofits must move beyond traditional forms of protest and embrace digital platforms for organizing and mobilizing younger audiences [11]. This transition is crucial, as the right-wing has effectively leveraged digital media to foster engagement, often through emotionally charged content that resonates with their base [11]. Addressing these challenges will be essential for the successful implementation of the OBBBA, as stakeholders within the education sector and nonprofit organizations work to find solutions that not only support student success but also ensure the sustainability of public education as a whole.

Case Studies

Optimization in Action

The One Big Beautiful Bill (OBBB) has spurred various case studies aimed at optimizing operations within higher education systems. One notable initiative involved establishing an enterprise shared service office specifically for a higher education system. This centralized approach sought to enhance operations by streamlining services, thereby increasing efficiency and reducing costs across multiple institutions [8].

Enhancing Operations Through Centralized Services

Another case study highlighted the positive impact of centralized services in a university system. By consolidating administrative functions and services, institutions were able to allocate resources more effectively and improve service delivery to students and faculty alike. This model not only supports operational efficiency but also fosters a more responsive educational environment, aligning resources with the evolving needs of the academic community [8].

Financial Incentives and Student Choices

Research has shown that financial aid programs significantly influence student choices and enrollment decisions. A study by Long (2004) examined how state appropriations and in-kind tuition subsidies impact the decision-making process for prospective college students. The findings revealed that the format of aid programs can sway students toward particular institutions, underscoring the importance of financial incentives in shaping educational pathways [13].

The Impact of Policy Changes on College Enrollment

The OBBB’s implementation coincided with pivotal changes in student loan policies, particularly following the 1992 Higher Education Reauthorization Act. Analyzing the effect of these reforms provided insights into how access to loans can alter enrollment rates and institutional choices among students. By leveraging the Consumer Expenditure Survey data, researchers found significant shifts in college attendance rates correlating with new funding mechanisms, illustrating the interplay between financial support and educational access [13]. These case studies illustrate the transformative potential of the OBBB in higher education, emphasizing the role of optimized operations, centralized services, and strategic financial incentives in improving student outcomes and institutional effectiveness.

Future Implications

The passage of the One Big Beautiful Bill Act heralds significant changes for higher education, impacting everything from student loans to institutional funding models. As colleges and universities prepare for the implementation of this legislation, they must navigate new complexities in their operations and strategic planning. The act introduces a set of accountability measures that institutions must adhere to, with significant consequences for those that fail to meet performance benchmarks [3][4].

Institutional Adjustments

Higher education institutions will need to adopt proactive scenario planning to understand the effects of these policy changes on potential revenues and student enrollment. This may involve reevaluating tuition rates, particularly for graduate programs where the cost of attendance may exceed borrowing thresholds [4]. Colleges must also brace for potential reductions in enrollment and consider cutting underperforming programs as a response to these financial pressures [3][4]. Moreover, the increased focus on accountability requires institutions to demonstrate that their graduates achieve economic outcomes that exceed those of individuals with only a high school diploma. Starting from July 1, 2026, schools will need to ensure their curricula align with the new accountability metrics, thereby influencing program offerings and recruitment strategies [4][14].

Financial Repercussions

While the most dramatic financial implications of the One Big Beautiful Bill may not be fully realized until 2028, public colleges and universities are likely to feel the repercussions much sooner. Analysts predict a reduction in federal support for student aid, which will force institutions to rethink their financial strategies [8][10]. This period of transition presents both risks and opportunities as institutions strive to maintain their missions of social mobility and workforce development amid budget constraints.

Navigating Uncertainty

The uncertainties surrounding the future returns on higher education investments may also deter prospective students from borrowing to finance their education. Students graduating into an unpredictable job market may struggle to repay their loans, leading to higher rates of loan defaults and financial instability [10][5]. As a result, institutions must enhance their communication with students regarding financial aid options and the value of their degrees in the evolving economic landscape.

Embracing Change

Despite the challenges presented by the One Big Beautiful Bill, there is an opportunity for higher education institutions to innovate and adapt. By implementing efficiency measures and investing in technology-driven solutions, colleges can enhance their operational models to better serve students and stakeholders [8]. Moreover, the integration of artificial intelligence and data analytics into institutional decision-making processes can facilitate a more strategic approach to meeting both academic and financial goals [8][5].

Google’s Gemini 2.5’s Response

The “One Big Beautiful Bill Act” (OBBBA), signed into law on July 4, 2025, significantly impacts higher education institutions and students through various changes to student loan programs, financial aid, institutional accountability, and even an endowment tax.

Here’s a breakdown of the key impacts:

Student Loans and Repayment

The OBBBA introduces substantial reforms to federal student loan programs, largely aiming to reduce federal borrowing and simplify repayment options.

• Elimination of Graduate PLUS Loans: Starting July 1, 2026, Graduate PLUS loans will be phased out. These loans previously allowed graduate students to borrow up to the full cost of attendance, and their elimination may push more graduate students toward private loans, which often have higher interest rates and fewer borrower protections.
• New Borrowing Caps:
  • Aggregate Lifetime Limit: All federal student loan borrowers will face an aggregate lifetime limit of $257,500.
  • Graduate Students:
    • Master’s Degrees: Limited to $20,500 annually and a $100,000 lifetime cap.
    • Law/Medical Degrees: Limited to $50,000 annually and a $200,000 lifetime cap.
  • Parent PLUS Loans: Parents borrowing for dependents will be limited to a $20,000 annual and $65,000 lifetime ceiling per dependent.
• Consolidated Repayment Plans: The bill streamlines federal repayment plans from seven to two:
  • Standard Repayment Plan: Fixed monthly payments over 10 to 25 years, depending on the loan balance.
  • Repayment Assistance Plan (RAP): An income-driven repayment (IDR) plan requiring 1% to 10% of income for up to 30 years, with a minimum $10 monthly payment. While RAP waives unpaid interest for timely payments, the extended 30-year repayment period may lead to higher overall costs for some borrowers.
• Elimination of Forbearance/Deferment for Hardship: The OBBBA removes the option for borrowers to pause payments due to unemployment or financial hardship, which could significantly impact students facing unexpected economic difficulties.
• Subsidized Loan Changes: While undergraduate access to subsidized federal loans remains, the benefit of the government paying interest while the student is in school will be eliminated, meaning interest will accrue immediately for both undergraduate and graduate students.

Financial Aid

Changes to Pell Grants and 529 plans will affect how students access financial aid.

• Pell Grant Eligibility:
  • Tightened Income Requirements: Higher-income families may face more scrutiny and find it harder to qualify for Pell Grants.
  • Ineligibility for Fully Funded Students: Students receiving full scholarships from their institutions will no longer be eligible for additional Pell Grant funding.
  • Expansion for Short-Term Programs: Pell Grant eligibility will be expanded to include short-term job-training programs, aiming to support career and technical education paths.
• 529 Education Plans: The OBBBA expands the types of expenses that can be covered by 529 plans to include workforce credentials and continuing education, not just traditional college tuition. It also increases the maximum annual withdrawal limit for elementary or secondary education from $10,000 to $20,000.

Institutional Accountability and Taxation

The OBBBA introduces measures to increase accountability for higher education institutions and modifies tax provisions.

• Earnings-Based Accountability: The bill ties federal funding eligibility for academic programs to the median earnings of program graduates. Undergraduate programs may lose federal aid if graduates earn less than the median high school graduate, and graduate/professional programs will be evaluated against the earnings of working adults in the same field. This aims to ensure a return on investment for students and taxpayers.
• Tiered Endowment Tax: The OBBBA establishes a tiered endowment tax for certain institutions. While maintaining the existing 1.4% rate, it introduces higher rates of 4% and 8% depending on an institution’s endowment size and student population.
• Reduced Department of Education Authority: The bill rolls back some rulemaking powers of the Department of Education, including those related to gainful employment metrics and borrower defense to repayment, which previously linked institutional eligibility to student debt-to-income outcomes. This could weaken federal oversight of institutions with poor student outcomes.

Broader Implications

Beyond direct higher education provisions, other aspects of the OBBBA may indirectly affect institutions and students:

• Cuts to Social Safety Nets: Significant cuts to programs like Medicaid and the Supplemental Nutrition Assistance Program (SNAP) could increase financial barriers for students already struggling to afford college, as many rely on these programs for essential needs. This may also strain state budgets, potentially leading to reduced public university funding.
• Impact on Workforce: The expansion of Pell Grants for short-term training programs reflects a focus on career and technical education, potentially shifting some student focus away from traditional four-year degrees toward more immediate workforce entry.

Overall, the “One Big Beautiful Bill Act” presents a complex set of changes for higher education, aiming to address federal spending and student debt while promoting accountability and workforce development. However, these changes are likely to create new financial challenges for many students, particularly graduate students and those from lower income backgrounds, and may reshape how institutions operate and are funded.

Claude’s Response

Based on my search results, the One Big Beautiful Bill Act (signed into law on July 4, 2025) will have several significant impacts on higher education institutions:

Major Changes to Student Loans

The bill overhauls the federal student loan system by reducing repayment plan options from seven to two and capping borrowing amounts. Specifically, it sets an annual loan limit of $20,000 for dependent students and a lifetime borrowing limit of $65,000 per dependent student. These changes take effect in July 2026.

Elimination of Graduate PLUS Loans

The legislation eliminates the Grad PLUS program, which could mean fewer students attend graduate school and would hit universities’ bottom lines, especially at institutions that rely heavily on graduate programs for tuition revenue.

Endowment Tax Increases

Wealthy private colleges will face a higher tax rate on their endowments, up to 8 percent (increased from the current rate of 1.4 percent).

New Accountability Measures

The bill ties colleges’ access to federal student loans to students’ earnings, with programs that fail to show their graduates earn more than an adult with only a high school diploma potentially being cut off from loans. According to analysis mentioned in the search results, fewer than half of two-year degree programs would pass this earnings test.

Budget Impacts

The legislation includes nearly $1 trillion in cuts to Medicaid, which will indirectly affect higher education institutions. Regional public universities are expected to be particularly impacted as they are typically “the first victim of tightened budgets” when state and local budgets are stretched.

Some Positive Changes

The bill does include an expansion of Pell Grants to short-term job-training programs, which achieves a long-sought goal for community colleges though in a last-minute change, the expansion excludes unaccredited providers.

Higher education experts and advocates are concerned that these changes will transform the sector, hurt universities’ finances, and hinder college access, particularly for low-income families who rely more heavily on the affected loan programs.

Chat GPT 4o’s Response

Here’s how the One Big Beautiful Bill Act, signed into law by President Trump on July 4, 2025, will affect higher education institutions:

1. Student Loan Overhaul & Borrowing Caps

• The act slashes federal student loan options down to just two: a Standard repayment plan and a new Repayment Assistance Plan (RAP)—eliminating SAVE, PAYE, IBR, and others.
• New limits on borrowing:
  • Graduate students capped at $100K total, professional degrees (e.g., medical, law) at $200K.
  • Parent PLUS loans capped at $65K per dependent .

Institutional Impact:

• Graduate and professional schools may see fewer enrollments—especially costly programs (law, medicine, dental)—and struggle to recruit low- and middle-income students.
• Private loans may see increased demand, shifting attention (and risk) away from federal aid systems.

2. Higher Monthly Repayments & Risk of Higher Defaults

• Monthly payments will likely increase due to elimination of plans with income-tied protections; RAP is less generous than previous plans.
• The government has also resumed aggressive loan collections, including garnishing wages and benefits.

Institutional Impact:

• Students may face reduced ability to repay, increasing default rates—potentially triggering financial and reputational damage to their institutions.

3. Pell Grant & Short-Term Program Restructuring

• The bill raises eligibility thresholds for Pell Grants and increases the minimum credit load from 12 to 15 credits—affecting part-time students.
• Pell funding expands to include short-term, workforce-focused credentials, though funding for this was later scaled back.

Institutional Impact:

• Fewer part-time and working students will qualify for aid.
• Community colleges and vocational schools may benefit from workforce credential support—but with sharper eligibility constraints.

4. Endowment Tax Increases

• Colleges with high per-student endowment assets now face 1.4–8% tax on investment income (Yale’s tax jumps from ~$45M to ~$280M annually).

Institutional Impact:

• Wealthy private institutions may implement cost-cutting, delay capital projects, freeze hiring, or reduce financial aid to cope.
• Smaller or state-funded schools might feel less direct effect.

5. Accountability Based on Earnings Outcomes

• The act ties eligibility for federal lending to program-level earnings outcomes—institutions with low-earning grads may lose access to federal loans.

Institutional Impact:

• Colleges may be pushed to bolster career services, recruit students more selectively, and even cut underperforming majors to protect loan access.

6. Federal Workforce & Vocational Initiatives

• Pell Grants now support short-term workforce training and credentials ≤ 8 weeks.

Institutional Impact:

• Encourages growth in micro-credentialing, apprenticeships, and certificate programs—even among traditional four-year institutions.

7. Department of Education Shake-Up

• Major staff layoffs and plans to dismantle the U.S. Department of Education are underway.
• Federal student aid administration may transfer to other agencies like SBA.

Institutional Impact:

• Operational delays, confusion, and compliance challenges in loans, financial aid disbursement, and civil rights enforcement.

Summary Table

Final Takeaway

The One Big Beautiful Bill Act reshapes the landscape of higher education by tightening access to federal loans, raising financial accountability, taxing wealthy endowments heavily, and shifting aid structures—all amid a sea change in federal oversight. Institutions must swiftly adapt—revise enrollment strategies, reinforce career services, optimize program value, and brace for administrative upheaval.

Chat GPT 4o’s Synthesis

I put each of the responses in a separate document and posed the following prompt to ChatGPT: I have four different articles about the impact of the One Big Beautiful Bill on higher education institutions. Can you compare the four articles and create a new one that emphasizes the best points from all four articles?

Chat GPT’s response to this prompt was:

Yes, I’d be glad to help with that. Please upload or paste the four articles you’d like me to compare. Once I have them, I will:

• Analyze each article to identify key themes, insights, and evidence.

• Compare and contrast their viewpoints and emphasis.

• Synthesize the best points into a single, polished article that reflects a comprehensive, insightful overview of the One Big Beautiful Bill’s impact on higher education institutions.

Once you share the articles, I’ll begin immediately.

I input each of the articles and Chat GPT provided me with a summary of each article including key impacts and an assessment. It also compared each article submitted after the first to the earlier articles submitted. After the fourth article was submitted, I received the following question from Chat GPT.

Would you like this converted into a standalone article or formatted for presentation (e.g., PowerPoint summary or executive briefing)?

I responded: I would like this converted into a standalone article please.

Appended below is the article that Chat GPT wrote after analyzing all four.

How the One Big Beautiful Bill Act Is Reshaping Higher Education

Signed into law on July 4, 2025, the One Big Beautiful Bill Act represents the most consequential federal intervention in U.S. higher education in over a decade. Its sweeping provisions affect everything from student borrowing and repayment to institutional funding and program accountability. While some hail the bill as a bold step toward efficiency and workforce alignment, others warn of deep inequities and operational disruption. This article explores the major reforms—and their far-reaching implications—for colleges and universities across the country.

A New Era of Student Loan Reform

One of the most dramatic changes under the One Big Beautiful Bill Act (OBBBA) is the complete overhaul of the federal student loan system. Beginning in July 2026, the number of repayment options will shrink from seven to just two:

• A Standard Plan with fixed payments over 10–25 years
• A new Repayment Assistance Plan (RAP), tied to income, but with fewer protections than prior income-driven plans like SAVE or PAYE

For many students, especially those with moderate-to-low incomes, RAP could stretch payments over 30 years, increasing total repayment amounts. Compounding the issue is the elimination of Graduate PLUS loans, once a lifeline for students pursuing high-cost degrees in medicine, law, and business. The bill also imposes strict borrowing caps, limiting graduate borrowing to $100,000 (or $200,000 for professional degrees), and capping Parent PLUS loans at $65,000 per child.

Institutional Impact:
Colleges that rely heavily on graduate and professional tuition revenue will likely see enrollment declines, especially from students unable or unwilling to pursue private loans. Financial aid offices must prepare for increased loan default risk, while institutions may need to reimagine pricing and financial aid strategies.

Rethinking Financial Aid and Access

While some provisions aim to expand access—most notably the extension of Pell Grant eligibility to short-term job training programs (8 to 15 weeks)—others may inadvertently narrow it.

The bill tightens Pell income qualifications and disqualifies students who already receive full scholarships from additional federal grant support. Interest on subsidized loans now begins accruing immediately, rather than being deferred while students are enrolled. In addition, students must now be enrolled in at least 15 credits per semester to qualify for Pell Grants, up from 12—a change that could disproportionately affect part-time and working students.

Institutional Impact:
Community colleges and vocational schools may benefit from the emphasis on workforce-aligned credentials. However, traditional four-year institutions will likely lose Pell-eligible students at the margins. The increase in 529 account flexibility (covering credentials and continuing education) could also shift enrollment dynamics.

Accountability Tied to Graduate Outcomes

In a push for outcomes-based accountability, the OBBBA mandates that institutions demonstrate graduates of each academic program are earning more than a baseline income:

• For undergraduate programs: earnings must exceed those of typical high school graduates
• For graduate/professional programs: earnings must match or exceed those of comparable professionals

Programs that fail these tests risk losing access to federal financial aid. Early analyses suggest that less than half of all two-year programs would meet this threshold, raising concern about the long-term viability of many associate degree offerings.

Institutional Impact:
Expect colleges to double down on career services, alumni tracking, and outcome data. Programs in liberal arts or low-wage fields may be reduced or eliminated, while professional programs will face added pressure to demonstrate ROI.

Wealth Tax on Endowments

To help finance the bill’s provisions and reduce the federal deficit, the legislation enacts a new tiered endowment tax. Institutions with high per-student endowment assets now face tax rates ranging from 1.4% to 8%. Yale, for example, will see its annual tax burden increase six-fold.

Institutional Impact:
Elite private institutions will feel the greatest pinch, potentially leading to hiring freezes, project delays, and reduced financial aid. While mid-sized and public institutions may escape direct taxation, they risk falling further behind in resource competition.

Federal Oversight Reforms

The bill significantly reduces the rulemaking authority of the U.S. Department of Education, including repealing policies like borrower defense and gainful employment metrics. Massive staff reductions are already underway, with federal student aid potentially being transferred to other agencies like the Small Business Administration (SBA).

Institutional Impact:
Colleges will face uncertainty around compliance, reporting, and aid processing. Institutions with previously poor student outcomes may operate with less oversight—but also face greater market-driven accountability from students and families.

Broader Socioeconomic Repercussions

Beyond direct higher education reform, the OBBBA also slashes nearly $1 trillion from Medicaid and other social safety net programs. These reductions may strain state budgets and reduce support services that many students—especially at public institutions—rely on for food, housing, and healthcare.

Institutional Impact:
Regional public universities, already grappling with demographic shifts and tight margins, may face declining enrollments, budget cuts, and more students unable to afford tuition. The trickle-down effects of reduced state support could be especially severe in economically fragile areas.

Strategic Implications for Colleges and Universities

Higher education leaders must prepare for a future that prioritizes outcomes, workforce alignment, and financial austerity. Key strategies may include:

• Reevaluating academic portfolios to eliminate underperforming programs
• Expanding credentialing and short-term certificate options
• Investing in data infrastructure to track graduate earnings and financial ROI
• Collaborating with employers to improve job placement pipelines
• Enhancing financial literacy and aid advising to reduce default rates

Conclusion: Transformation or Disruption?

The One Big Beautiful Bill Act reshapes the landscape of U.S. higher education in ways both sweeping and uncertain. While its focus on accountability, debt reduction, and workforce skills aligns with national priorities, the unintended consequences—reduced access, shrinking program diversity, and destabilized institutional budgets—could be far-reaching.

For some colleges, the bill presents an opportunity to streamline and innovate. For others, especially those serving vulnerable populations, it may represent an existential threat.

Whether the act leads to a healthier, more responsive education system—or one marked by deep inequality and constrained ambition—depends largely on how institutions adapt in the years to come.

My Critiques

At nearly 1,900 words, Stanford’s STORM is the lengthiest article. It has the most categories and introduces a few creative ideas under its Case Studies section. It also included a section about Policy Implications. The article has an excellent referencing system; most of the 15 references were relevant.

I was disappointed with the STORM article for several reasons. First, very few numbers were used in any of the sections. Second, the article omitted the impact of the endowment tax changes.

Google’s Gemini 2.5 weighed in with the second-longest article at approximately 800 words. I liked the outline format better than a traditional LLM paper. The outline provided dates and numbers, something woefully missing from the STORM article. Gemini also stated that significant cuts elsewhere in the bill to Medicaid and SNAP at the state level could impact public university funding, which is an important point to consider. Gemini provided 17 sources for its article, but some were from Congressional offices, not necessarily objective sources for a paper.

Claude provided the shortest article among the four tools: 321 words to be exact. It provided 16 sources for the statements made in its article, but the referencing system was not one that I enjoyed tracking. Although the article was the shortest and did not have the level of specificity that Gemini provided, it covered the major highlights (lightly) and even noted the potential impact on public universities from the $1 trillion cut to Medicaid at the state level.

Chat GPT 4o’s response was nearly 600 words. I liked the outline style it provided. While generally accurate, it omitted the potential impact on public institutions because of the Medicaid cuts to the states. More importantly, it was the only AI to hallucinate on this assignment. Chat GPT inaccurately claimed that the full-time Pell eligibility increased to 15 credit hours. That proposal was in the House version of the bill, but not the Senate’s. It was the Senate’s version that was ultimately reconciled and signed.

I liked the Chat GPT 4o synthesis article. It included the most relevant sections from all the articles. It was well written, but references were not included. Unfortunately, it chose to repeat the hallucination error from the earlier Chat GPT-generated article regarding the statement that full-time Pell students had to earn 15 credits to maintain eligibility instead of 12 credits.

Final Thoughts

It was more work for me to review each of the articles in detail and write about them than it would have been if I had simply skimmed each of them and built an article from the materials. At the same time, the exercise benefited me in several ways.

• There are still hallucinations that a user must consider while reviewing LLM-generated articles. The Chat GPT error about requiring 15 credit hours for a full-time Pell student was a major error. While I didn’t find others, some of the articles were less specific than others.
• A subject matter expert is likely to find better reference sources than those sourced by the LLM. One example I found through a simple Google search that was not listed as a source by any of the tools was a chart from NASFAA that outlined the Federal Student Aid changes from the One Big Beautiful Bill Act.
• A prompt’s specificity level is very important for the quality of the output. I deliberately tried to keep the prompt with the same language for all four tools. The output was vastly different. This initiative might have been more successful had I been more specific in my prompt language with what I was looking for, like an academic assignment. Unfortunately, the Stanford STORM tool limits the input style of a prompt differently from the other tools. I should have ignored that and increased the specificity of the prompt for the other three.
• While the currency of the most popular AI tools has improved since their first introduction more than two years ago, an assignment like this may be easier to complete through Google or another major search tool.

Lastly, while the writing skills of LLMs may be impressive and helpful to those whose skills need improving, the better outputs in this exercise were those that generated the points in an outline format. Part of the problem with researching topics today is data overload. Another problem is the importance of knowing which sources are better than others. I think it will be a while before the latter problem is solved using generative AI.