We’re now less than a month from the July 1 OBBBA implementation deadline, and the cracks are starting to show. Our reporting this week revealed that medical, dental, and veterinary students are seeing real loan disbursement delays and incorrect borrowing-cap notices as financial aid offices scramble to rebuild their systems on a six-week timeline. Meanwhile, the campus finance crunch keeps spreading — even Harvard isn’t insulated.

Here’s a quick look at the most important stories shaping higher education and student finances this week for June 5, 2026.

Headlines at a Glance

• Med, dental, and vet students are facing federal loan disbursement delays and incorrect cap notices as the OBBBA rollout stalls aid.
• Harvard’s Faculty of Arts and Sciences lays off three administrative deans as it tries to close a $365M deficit.
• Ursinus College cuts 15% of its staff, the latest in a wave of Pennsylvania small-college pressure.

1. Vet And Medical Students Face Loan Disbursement Delays As OBBBA Rollout Stalls Aid

Over the past several weeks, we’ve heard multiple reports from graduate students about financial aid delays and miscommunication as they start summer classes. For medical, dental, and veterinary schools that begin in May or June with a “summer header” semester, the One Big Beautiful Bill Act rollout is causing real chaos. 

One student reported receiving an inaccurate notice claiming they hit the updated graduate borrowing limits despite being grandfathered in while another reported delayed loan disbursements that pushed past tuition due dates and orientation supply windows. 

Our full reporting is here.

Impact: If you’re starting a med, dental, or vet program this summer and you’re a current borrower expecting grandfathering protection, double-check your financial aid notice against your enrollment records. If you’ve been incorrectly flagged as capped, contact your financial aid office immediately — the issue is fixable but requires manual intervention. 

Health professional students should budget for $1,500 to $4,000 in first-year supply costs (stethoscopes, instruments, scrubs, dissection kits, required technology) and have a backup plan in case loan disbursements slip past your orientation window. 

2. Harvard’s Largest School Lays Off Three Administrative Deans In $365M Restructuring

Harvard’s Faculty of Arts and Sciences laid off three divisional administrative deans on June 2 as part of a sweeping summer restructuring aimed at closing the school’s $365 million structural deficit. The cuts were the first confirmed step in a plan developed with McKinsey & Company (Harvard paid the consulting firm $250,000) that could lay off up to 25% of FAS staff. The deficit is driven primarily by the federal endowment tax hike Congress imposed last year and deferred capital expenses.

Impact: If you have a student at Harvard or another elite research university, expect changes in administrative responsiveness, department-level support, and possibly course offerings as schools consolidate.

More broadly, the Harvard story is a warning shot for parents and students evaluating prestige private universities: the federal funding environment is squeezing institutions that families have long assumed were financially bulletproof. Endowment size alone doesn’t tell you how stable a school’s operations will be over the next four years. Ask specific questions on tours and during admitted-student events about hiring freezes, program cuts, and graduate program contractions.

3. Ursinus College Lays Off 15% Of Staff In Latest Pennsylvania Small-College Cut

Ursinus College, a small private liberal arts school about 30 miles northwest of Philadelphia, laid off 15% of its staff this week (26 full-time and 10 part-time workers) 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. Ursinus sits in one of the most crowded higher-ed markets in the country, per Chronicle analysis, and is the latest in a string of Pennsylvania institutions under acute financial stress.

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 consistent: small, tuition-dependent liberal arts colleges in the Northeast and Mid-Atlantic, facing enrollment declines of 10% or more over the past few years, are running out of room to cut.

Impact: If you have a student enrolled at (or admitted to) a small private liberal arts college, financial stability is no longer a soft factor in the decision. Pull the school’s IRS Form 990, check Moody’s or S&P credit ratings if available, look at enrollment trends over the past five years, and watch for warning signs like deferred capital maintenance, program cuts, faculty buyouts, or auditor “going concern” qualifications. Students already enrolled at a financially stressed school should make sure their credits are transferable and have a backup plan if their program is cut. Our 2026 college closures tracker is here.