Four universities have announced significant staff reductions in the past two weeks: the University of Minnesota approved plans to eliminate about 230 jobs and raise tuition 3.8%; Temple University finalized 40 layoffs and a 3.4% tuition hike — its second consecutive year of both; Louisiana State University terminated 25 employees including senior officials; and UCLA laid off 27 technology staff while projecting a $220 million deficit. The budget crisis that swept through small private colleges earlier this year has moved into flagship territory.

We covered the wave of college budget cuts in June — Ursinus, Harvard FAS, UConn — and Saint Louis University's 80-position cut last week. The pattern has not changed. It has spread.

What Each School Announced

University of Minnesota — The Board of Regents approved a $5.4 billion operating budget that eliminates roughly 230 jobs through a combination of layoffs and attrition. Most students will see a 3.8% tuition increase. The vote passed 9 to 1. The university cited flat state funding, declining federal research support, and inflationary cost pressures as the primary causes.1

Temple University — The Philadelphia university finalized a $1.3 billion operating budget that includes about 40 layoffs and a 3.4% average tuition hike. In-state tuition rises to $20,376 per year; out-of-state rises to $36,600. Fees increase 3.9% to $1,098, and room and board goes up 4%. The university is working to close an $85 million projected deficit. This marks the second consecutive year Temple has raised tuition and laid off staff simultaneously.2

Louisiana State University — LSU terminated 25 employees, including high-ranking officials, saving $3.7 million that the university says will be redirected toward faculty and research.3

UCLA — The university laid off 27 digital and technology staff members while projecting a $220 million deficit. The move drew union pushback over contract adherence concerns.3

— UCLA's budget shortfall contributing to 27 technology staff layoffs, July 2026

Three Things Worth Understanding

Temple raised its financial aid budget at the same time it raised tuition. The university increased its financial aid allocation by 7% to $196.1 million — and explicitly worked to protect student-facing roles during layoffs. That doesn't help every family, but it means the net price increase may be smaller than the sticker price increase for students with demonstrated financial need. Before assuming a school with higher tuition is unaffordable, use its net price calculator.

At Minnesota, "230 jobs" includes attrition — not just layoffs. Attrition means eliminating positions when people leave voluntarily, over months or years. Immediate layoffs hit differently: services disappear overnight. The distinction matters if you're weighing whether to enroll at a school announcing cuts. A university eliminating positions primarily through attrition has more time to absorb the change than one issuing layoff notices.

Higher tuition plus fewer staff means worse value, not just higher cost. The students most affected by budget cuts aren't the ones who leave. They're the ones who stay and try to navigate registration holds, financial aid disputes, and advising wait times with fewer staff available. If you've ever needed to appeal a financial aid decision, you know how much one knowledgeable person on the other end of the phone matters.

Temple has raised tuition and laid off staff two years in a row. When a university's response to a budget gap becomes a multi-year pattern, it signals a structural problem — not a one-time adjustment. That distinction is worth weighing when you compare financial aid offers between schools.

Why This Is Happening Across Multiple Sectors

Enrollment decline. The pool of traditional college-age students has been shrinking for years, and the enrollment cliff is no longer a future event — it's the current operating reality at many schools. Temple specifically cited declining domestic and international enrollment.

Federal funding pullback. Federal research funding cuts have moved through public flagship universities all year. Minnesota named it directly in its budget rationale. UCLA's technology layoffs likely reflect reduced infrastructure demand from shrinking research grants.

Costs outrunning revenue. Insurance, benefits, energy, and compliance costs have increased faster than tuition revenue can offset — especially when enrollment is flat or declining. Tuition increases are becoming a partial fix, not a complete one.

Check a university's completion rate and its post-graduation earnings data before you enroll. Both are available on the Department of Education's College Scorecard at collegescorecard.ed.gov. High completion rates and earnings outcomes relative to cost are more reliable signals than rankings — and a school announcing staff cuts is telling you something about its financial direction.

What to Do If You're Choosing or Already Enrolled

If you're comparing schools for fall, factor in financial health alongside net price. A lower sticker price at a school burning through reserves isn't automatically the safer financial choice. Understanding the real cost of college starts with net price, not headline tuition — and it includes what the school can actually afford to support while you're there.

If you're already enrolled at a school that has announced cuts, ask your financial aid office what any tuition increase means specifically for your aid package. Schools that raise financial aid budgets proportionally to tuition increases may keep your net price flat. Get the answer in writing before the fall semester starts.

This week's announcements cover a public flagship system (Minnesota), a large urban research university (Temple), a major Southern research institution (LSU), and a UC flagship (UCLA). The private vs. public college cost question still matters, but it no longer tells you which sector is financially safer. The pressures are cross-sector now.

For anyone still building a college list, this is a useful moment to revisit the criteria you're using. Financial stability — not just price — belongs on the list. How you choose a college in 2026 requires asking different questions than it did five years ago.

Footnotes

  1. Star Tribune. (2026). U of M approves budget, raising tuition and cutting 230 jobs. startribune.com; InsideHigherEd. (2026, July 7). June Brings Deep Cuts at Several Universities. insidehighered.com ↩

  2. The Philadelphia Inquirer. (2026, July 8). Temple University will lay off employees and raise tuition for the second consecutive year. inquirer.com ↩

  3. Forbes. (2026, July 10). Budget Woes Bring More University Buyouts, Layoffs, And Hiring Freezes. forbes.com ↩ ↩2