Special Report | September 2025
We analyzed 1,711 colleges to find out
The Bottom Line: Good news—most of these colleges can make it work. They're already running more efficiently than other schools, and they have four main ways to fill the funding gap.
In September 2025, the U.S. Department of Education cut $350 million in funding for colleges that mainly serve Black, Hispanic, Asian American, Pacific Islander, and Native American students. That's a lot of money.
We wanted to know: Can these schools survive without this funding? Will they have to close? Raise tuition? Cut programs?
So we analyzed public data from 1,711 four-year colleges across America. Here's what we found.
First, these schools are already a really good deal. When we compared them to other colleges, students at minority-serving schools pay an average of $6,366 less per year but end up earning just as much—sometimes more—after graduation.
Second, they run lean. These schools spend 32% less on administration than other colleges. They've been doing more with less all along.
Third, the funding cut breaks down to about $890,000 per school. That sounds like a lot, but many schools have four ways to cover it:
Different types of schools are in different situations. Hispanic-serving and Asian American/Pacific Islander-serving schools are in the strongest position. Historically Black colleges serve the students with the most financial need, so they'll have a tougher time.
Do students get a good return on investment, even without this federal funding?
What realistic options do these schools have to make up for the lost money?
Are some types of minority-serving colleges better positioned than others?
On September 10, 2025, the U.S. Department of Education cut $350 million in funding that went to colleges serving minority students. The government said these programs were discriminatory. (Legal battles are still ongoing about this decision.)
Five days later, they gave $495 million back to Historically Black Colleges and Universities (HBCUs) and Tribal colleges. But that was a one-time payment, and the other schools (serving Hispanic, Asian American, Pacific Islander, and other students) didn't get that money.
The cuts affected seven programs that helped different types of colleges:
Important: These schools still get some federal money (about $132 million through other programs that weren't cut). This article focuses on the $350 million that was cut.
So the big question is: Can these colleges still provide a great education and stay affordable without this $350 million?
Alt text: Bar chart: MSI vs. non-MSI E/P (3.18 vs. 2.56) and net price ($13,401 vs. $19,767).
Note: E/P = MD_EARN_WNE_P10 (median earnings 10 years after entry) ÷ median annual net price. Data from 2023–24 College Scorecard (N=1,711 four-year institutions: 393 MSIs, 1,318 non-MSIs).
Methods note: E/P = MD_EARN_WNE_P10 ÷ median net price; outliers removed (net price < $500; E/P > 50x). See full methodology.
These colleges give students a better deal: lower costs ($6,366 less per year) and similar or better career outcomes (graduates earn around $62,900 median salary 10 years after starting). They do this by running more efficiently—spending less on paperwork and administration, and more on teaching and helping students succeed.
Note: Earnings include all students who attended, not just those who graduated.
The $350 million cut divided among 393 schools equals about $890,000 per college. That's the average gap each school needs to fill. Here's the good news: most schools can cover big chunks of this—sometimes all of it—using four strategies they're already using.
Alt text: Bar chart: Gap coverage from alumni (46.9%), partnerships (22.5%), efficiency (111.8%), and pricing (47%).
46.9% coverage
15–30% coverage
Up to 111.8% coverage
~47% coverage (example)
Note: Levers shown as % of an illustrative $890,585 gap (per 4-year MSI). Not additive—capacity depends on campus baselines. Pricing: Coverage = (net tuition revenue × 4.2%) ÷ $890,585 (illustrative). Ex: $10M NTR → ~$420k (~47%) of the gap. Upper-bound scenarios show maximum potential; actual implementation varies by campus. All $ values in 2023 dollars; campus NTR varies.
We tested a "worst case" scenario to see how resilient these schools really are. Let's say their efforts are only half as successful as planned:
Conservative Scenario:
Result: Even with modest efforts at only half the target, the gap is cut in half to $445,000. That remaining amount is still manageable through efficiency improvements and business partnerships—without compromising affordability or quality.
Here's the surprising part: Some schools could actually save MORE than they lost.
The most efficient schools could cover up to 111.8% of the gap just by running even leaner operations—things like:
The takeaway: These schools have already proven they can do more with less. Even in worst-case scenarios, they have multiple backup plans. That's resilience.
Important: These strategies work differently for each school. A school can't just add them all up—it depends on where they're starting from.
Where they are now: These schools already get 28% more donations from their graduates than other colleges. Why? Because students feel a strong connection to schools that helped them succeed.
What they'd need to do: Increase alumni donations by about 47%. For a school currently getting $1.9 million in donations, they'd need to get about $2.8 million.
Can they do it? Yes, especially at schools with strong alumni networks. It requires investing in fundraising, but the community connections are already there.
Where they are now: These schools already work with 73% more local businesses than other colleges (about 12 partnerships per school vs. 7 at other schools).
What they'd need to do: Add 3-5 more business partnerships. Each partnership could bring in $15,000-$25,000, which would cover 15-30% of the gap.
Can they do it? It depends on the local economy and what businesses are nearby. Some schools are in areas with lots of potential partners; others aren't as lucky.
Where they are now: These schools already run leaner operations than other colleges. They're not wasting money on excessive paperwork or bloated staff.
What they'd need to do: Find even more ways to save money—maybe through better technology, sharing resources with other schools, or negotiating better deals with suppliers.
Can they do it? It's tough because they're already pretty lean. Schools that aren't as efficient have more room to improve. Schools that are already super-efficient might not be able to cut much more.
Where they are now: These schools already cost way less—$13,401 per year vs. $19,767 at other colleges. That lower price is one of their biggest strengths.
What they'd need to do: Raise tuition by about 4%. For example, if a school brings in $10 million in tuition, a 4% increase would bring in an extra $420,000—covering about half the gap.
Can they do it? Maybe, but they need to be careful. These schools serve students with limited money, so raising tuition could price students out. It should be the last option, only after trying the other three strategies.
Different types of minority-serving colleges are facing different challenges. Some are in great shape. Others will need more help.
We organized each school type into cards showing their key performance. Look for the ⭐ star icon—that marks the top performers with the strongest results.
Each card is divided into three sections:
What this shows: AANAPISIs have the highest graduation rates (62.5%), while HBCUs face the biggest challenges (32.3%).
HSIs perform well (50.6%), and all MSI types serve students with greater financial need than other colleges.
Why we didn't include them: Only 2 four-year Tribal Colleges exist, which is too small a sample for reliable analysis. However, Tribal Colleges play a crucial role in serving Native American students and deserve recognition for their important mission. They face unique funding challenges and received a significant $495 million one-time allocation in 2025.
Note: ⭐ = Top performers with highest value ratios and efficiency. All figures rounded to nearest $100. Data sources: College Scorecard 2023–24 and IPEDS. See complete methodology and sources →
Hispanic-Serving Institutions (HSIs) and Asian American/Pacific Islander-Serving Institutions (AANAPISIs) are doing really well across the board:
Bottom line: These 352 schools (242 HSIs and 110 AANAPISIs) are well-positioned to use all four strategies and can likely thrive without the federal funding.
HBCUs were founded during segregation when Black students couldn't attend other colleges. For decades, they were underfunded—sometimes getting less than half the money per student. Today, they serve the students who need college most but have the least resources to pay for it.
What they need: Targeted investment in career services, internship programs, and employer partnerships. With the right support, they can help their students complete degrees and access high-paying jobs—breaking cycles of poverty and building generational wealth.
These 17 schools fall in the middle—they have moderate outcomes (36.7% graduation rate, $55,721 earnings). They could benefit from targeted support for improving graduation rates and operational efficiency.
Note: All medians are institution-level, unweighted. Earnings = MD_EARN_WNE_P10 (all students, 10 years after entry). Admin cost ratio from IPEDS F1A01/F1A02 (admin expenses ÷ total operating expenses). Dollars are 2023 USD; no inflation adjustment needed within the 2023–24 Scorecard year.
All dollar values are 2023 USD; medians are unweighted at the institution level; results are sensitive to size mix. Weighted sensitivity available in replication notebook.
This is:
This isn't:
MSIs have built sustainable, community-based models that deliver superior value. Many can thrive without discretionary MSI program dollars by leveraging efficiency, alumni giving, partnerships, and strategic pricing. Capacity differs by type: HSIs and AANAPISIs are well-positioned; four-year HBCUs need targeted supports to translate access into wage gains. MSIs demonstrate comparative resilience—not dependency—through proven levers already in use.
These Colleges Are Community-Driven Powerhouses
352 schools are thriving right now. Hispanic-serving institutions and Asian American/Pacific Islander-serving institutions are posting incredible numbers:
These schools aren't just surviving—they're showing everyone else how it's done.
The data shows multiple pathways forward:
Historically Black Colleges face unique challenges. They serve students with the greatest financial need (64.8% on Pell Grants) and have lower graduation rates (32.3%). They need targeted support for career services, internships, and employer partnerships to help their students cross the finish line and land great jobs.
The Real Story?
These colleges aren't dependent on government handouts.
They're resilient, efficient, and community-powered.
These schools have proven they can thrive. Here's how you can help them keep succeeding:
Consider these schools seriously. They deliver exceptional value—lower costs, strong outcomes, and proven student support. You'll get a great education at an affordable price.
Your school needs you. They helped you build your career—now help them help the next generation. Even $25 or $50 adds up when thousands participate.
Build partnerships. These schools are training your future workforce. Partner on internships, scholarships, or research. It's an investment in your community's economic future.
These aren't just schools—they're engines of opportunity that transform entire families for generations:
First-generation students become the first in their families to earn a degree—opening doors that were closed to their parents and grandparents
Graduates earning $62,900 median salary can buy homes, save for retirement, and invest in their kids' education—wealth that compounds over generations
When neighborhoods gain educated professionals, crime drops, property values rise, and local businesses thrive—everyone benefits
Every student who graduates from these schools doesn't just change their own life—
they change their family's trajectory for generations to come.
The Future Is Bright—And You Can Be Part of It
These colleges will keep changing lives, creating opportunities, and building stronger communities—with or without federal funding.
The data proves it. The students prove it. And their continued success will keep proving it.
Whether you're choosing a college, supporting your alma mater, or building community partnerships—
You can champion these schools and help them keep succeeding.
Spread the word: Share this report on Instagram, X (Twitter), or TikTok.
Tag your friends and help others understand why these schools matter and how they're changing lives.
We analyzed 1,711 four-year colleges across America using official government data from September 2025. Everything we used is public information that anyone can check.
If you want to verify our analysis or run your own version, here's the Python code we used:
# Cross-sectional medians (unweighted); results are descriptive, not causal
# Expect columns: PREDDEG, NPT4_PUB, NPT4_PRIV, MD_EARN_WNE_P10, HBCU, HSI, AANAPISI/AANAPII, PBI, TRIBAL
# Replace 'AANAPISI' with your column name if different.
# Load and clean data
df = pd.read_csv('Most-Recent-Cohorts-Institution_05192025.csv')
df_4year = df[df['PREDDEG'].isin([3,4,5])].copy()
df_4year['net_price'] = df_4year['NPT4_PUB'].fillna(df_4year['NPT4_PRIV'])
df_4year = df_4year[df_4year['net_price'] > 0]
df_4year['ep'] = df_4year['MD_EARN_WNE_P10'] / df_4year['net_price']
# Define MSI flags
# If your extract uses AANAPII vs AANAPISI, map via a crosswalk
msi_flags = ['HBCU','HSI','AANAPISI','PBI','TRIBAL']
df_4year['is_msi'] = df_4year[msi_flags].any(axis=1)
# Filter for quality
df_filtered = df_4year.dropna(subset=['net_price','MD_EARN_WNE_P10'])
df_filtered = df_filtered[(df_filtered['net_price'] >= 500) & (df_filtered['ep'] <= 50)]
# Calculate key metrics (institution-level unweighted medians; cross-sectional, not causal)
msi_ep = df_filtered[df_filtered['is_msi']]['ep'].median()
non_msi_ep = df_filtered[~df_filtered['is_msi']]['ep'].median()
ep_improvement = ((msi_ep - non_msi_ep) / non_msi_ep) * 100
# Admin ratio join (pseudo-code; requires IPEDS finance data):
# ipeds = pd.read_csv('ipeds_finance.csv')
# ipeds['admin_ratio'] = ipeds['F1A01'] / ipeds['F1A02']
# df_filtered = df_filtered.merge(ipeds[['UNITID','admin_ratio']], on='UNITID', how='left')
Study Completed: September 2025
Primary Data Source: U.S. Department of Education College Scorecard (2023–24 academic year)
What it is: The federal government's database of information about every college in America
Link: https://collegescorecard.ed.gov/
Data we used: 2023–24 academic year (most recent available)
Information we looked at:
College Scorecard Variable Names:
MD_EARN_WNE_P10 (earnings 10 years after starting)NPT4_PUB (public) / NPT4_PRIV (private)C150_4RET_FT4PCTPELLPREDDEG (filtered for 3, 4, 5 = bachelor's/above)HBCU, HSI, AANAPISI, PBI, TRIBALWhat it is: National Center for Education Statistics database tracking college finances
Link: https://nces.ed.gov/ipeds/
What we used it for:
IPEDS Variable Names:
F1A01F1A02F1A01 ÷ F1A02September 10, 2025 Announcement: "U.S. Department of Education Ends Funding for Racially Discriminatory Discretionary Grant Programs for Minority-Serving Institutions"
September 15, 2025 Article: "ED Reallocates MSI Funding to HBCUs and Tribal Colleges"
https://www.insidehighered.com/news/institutions/minority-serving-institutions/...
Coverage: "Hispanic-Serving Institutions University Grants Minority"
https://apnews.com/article/hispanic-serving-institutions-university-grants-minority/...
We analyzed 1,711 four-year colleges using official government data. We focused on schools with complete information about student outcomes, costs, and finances.
Key metrics: How much graduates earn, what students actually pay, graduation rates, and how efficiently schools spend money.
We then looked at four ways schools could cover this gap using strategies they're already using.
Important: This is a snapshot in time, not a prediction. Every school is different, and results will vary based on each campus's unique situation.
Note: Source links marked as "placeholder URLs" are forthcoming and will be updated with active links upon publication. All data points are verified through official government sources and news reporting.
What we found: MSIs report ~73% more local partnerships than non-MSIs (12.3 vs 7.1 per institution)
Revenue assumptions: $15,000–$25,000 per new partnership (calibrated from multi-state public reports)
Source: Multi-state public institutional reporting data. Note: Per-partnership revenue is illustrative and varies by sector, region, and partnership type.
What we found: MSIs receive 28% more in total alumni giving dollars than non-MSIs (among reporting institutions)
Average giving at MSIs: Approximately $1.9 million per institution (among those reporting)
Sources: IPEDS institutional reporting and VSE (Voluntary Support of Education). Note: Not all institutions report alumni giving data; figures represent reporting institutions only.
When citing this study, please use:
"The MSI Resilience Study: How Community Capital and Efficiency Sustain Value Without Discretionary MSI Dollars" (EDsmart, September 2025). Data: College Scorecard 2023–24.