This was a big week for higher education and student loan news. Hampshire College announced it will permanently close, a federal court deadline forced automatic student loan discharges for thousands of borrowers, and Georgia approved tuition increases across its entire public university system.
Meanwhile, Congress took aim at changes to Public Service Loan Forgiveness, and a new report revealed that college fundraising hit a record high — but with a catch.
Here’s a quick look at the most important stories shaping higher education and student finances this week for April 17, 2026.
🎓 Headlines at a Glance
- Hampshire College announces permanent closure after decades of financial struggles
- April 15 Sweet v. McMahon deadline triggers automatic loan discharges for thousands of borrowers
- Georgia Board of Regents approves tuition increases at all 25 public colleges for 2026-27
- Bipartisan lawmakers introduce resolution to block Trump administration’s PSLF rule changes
- College donations reach $78.8 billion, but 89% of funds come from just 2% of donors
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1. Hampshire College Announces Permanent Closure
Hampshire College, the Massachusetts liberal arts school founded in 1965, announced on April 14 that it will permanently close at the end of December 2026. The school (long known for its gradeless, self-designed curriculum) cited declining enrollment, rising costs, and fiscal instability as the driving factors.
The closure comes after the New England Commission of Higher Education placed Hampshire on “show cause” status last month over concerns about its fiscal health, particularly a $21 million bond the college had been unable to refinance. Students currently enrolled will be able to complete their degrees through the fall 2026 semester, but newly admitted students will not be allowed to enroll and will receive refunds.
➡️ Impact: If you’re a prospective student or family considering small private colleges, pay close attention to an institution’s accreditation status and financial health before committing. Hampshire’s situation underscores the risk of choosing a school that may not survive long enough for you to graduate.
2. Sweet v. McMahon: April 15 Deadline Triggers Automatic Loan Discharges
The April 15 deadline in the Sweet v. McMahon settlement (formerly Sweet v. Cardona) has passed — and for thousands of student loan borrowers, that’s good news. Under the terms of the settlement, any post-class borrower defense application that the Education Department failed to decide by April 15 automatically qualifies for full settlement relief: complete loan forgiveness, refunds of all payments made, and deletion of the loan tradeline from credit reports.
The Department had already missed its January 28 deadline to process over 170,000 applications from borrowers who attended Exhibit C schools. Those applications were automatically approved under the settlement terms. When the Department requested an 18-month extension in February, Judge Haywood Gilliam denied it. The Ninth Circuit also rejected the Department’s emergency stay request in March, finding it was “unlikely to succeed on the merits.”
The settlement covers a class of more than 750,000 borrowers who filed borrower defense to repayment claims. You’re a class member if you had a pending application as of June 22, 2022, or received a “form denial” between December 2019 and October 2020.
➡️ Impact: If you filed a borrower defense claim and haven’t heard back, check your status through your loan servicer. If your application was pending as of the deadline and went undecided, you may be entitled to automatic discharge and refund under this settlement.
3. Georgia Approves Tuition Increases Across All 25 Public Colleges
On April 14, Georgia’s Board of Regents voted to raise tuition at all 25 of the University System of Georgia’s public colleges and universities for the 2026-27 academic year. In-state undergraduate students will see a 1% increase, while out-of-state and international students face a 3% hike.
This marks only the fourth time in a decade that the Board has approved any tuition increase for Georgia residents. USG officials noted that even with the uptick, the increase remains well below the current inflation rate of 2.7%. Over the past 10 years, average in-state tuition growth across the system has stayed below 1% annually. The Board also approved fee adjustments at 13 institutions, including some reductions for in-person students.
The new rates are pending final approval by Gov. Brian Kemp and are expected to take effect for the summer and fall 2026 semesters.
➡️ Impact: Georgia continues to be one of the more affordable public university systems in the country, but out-of-state families should note the 3% increase. Nationally, the average tuition increase is projected at 3.25% for 2026-27, so Georgia’s in-state bump remains modest by comparison.
4. Congressional Democrats Move to Block PSLF Rule Changes
On April 14, a bipartisan group of lawmakers introduced a Congressional Review Act resolution aimed at blocking the Trump administration’s new Public Service Loan Forgiveness rule.
The rule, finalized by the Education Department, amends the definition of “qualifying employer” under PSLF to exclude organizations the Department determines have a “substantial illegal purpose,” including what the rule describes as supporting terrorism or aiding illegal immigration. The rule is scheduled to take effect on July 1, 2026, barring any challenges.
➡️ Impact: If you’re working toward PSLF, keep close tabs on your qualifying employer status and any changes to your repayment plan.
5. College Donations Hit $78.8 Billion — But Fewer Donors Are Carrying the Load
Charitable giving to U.S. colleges and universities rose to an estimated $78.8 billion in fiscal year 2025, a 4% year-over-year increase, according to the latest annual report from the Council for Advancement and Support of Education (CASE). But the headline number masks a concerning trend: the donor base is shrinking.
The report found that 89% of all funds received came from just 2% of donors. For the fourth consecutive year, the number of alumni donors fell, even as total alumni dollars climbed. The median gift per alumni donor hit a record $1,895, driven largely by a shift toward gifts of $1,000 or more. Smaller-dollar alumni donations continued to decline.
On the institutional side, individual giving rose 12% to $17.5 billion, and corporate gifts jumped 9.3% to $5.4 billion. Foundation giving, however, dropped 5.1% to $13 billion. Planned gifts (including bequests) grew as a share of personal giving, reaching 23.7%, up from 18.1% a decade ago.
➡️ Impact: Record-high giving sounds positive, but the concentration of donations among a tiny group of mega-donors raises questions about long-term sustainability. Schools that rely heavily on a few major gifts are more vulnerable to economic downturns or shifts in donor priorities. For families, this trend can affect financial aid availability, campus resources, and institutional stability.
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Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.