2025 has certainly been challenging for the higher education community. It seems like we say this every year, but 2025 will stand out as the year where everything from admission policies to funding for academic research were impacted.
On his first day in office, President Trump signed Executive Order 14161 with a goal of strengthening our national security through stricter vetting of foreign nationals allowed into the United States. Specific to higher education, the order allowed for the revocation of an international student’s visa should they be deemed a ‘Hamas sympathizer.’ By the start of fall semester, institutions were already feeling the effects of this order. It is estimated that international enrollment is down 15% with some students deferring admission and others choosing to study in other countries. For institutions historically enrolling large numbers of international students the enrollment dip is causing fiscal challenges that may need to be resolved by layoffs or hiring freezes. Further, the Association of International Educators (NAFSA) projects the hit to the US economy will be nearly $7 billion.
Other executive orders signed in January addressed Diversity, Equity, and Inclusion (DEI) programs for both government offices and private sector contractors or others receiving federal funding. A Dear Colleague Letter in February contained specific requirements for Higher Education institutions and was followed in March with a FAQ document with more specific guidance. As a result of the decision by a federal court in April, the Department of Education (ED) has informed the community they will not be enforcing the regulations stipulated in these documents until further notice. Even so, many institutions continued to re-shape their admissions and financial aid programs ‘to be on the safe side.’ It remains to be seen what, if any, effect these changes will have on the make-up of our campuses.
Another event in March that was felt much more keenly by the financial aid community was Executive Order 14242 which effectively called on the Secretary of Education to facilitate the Department’s closure. This executive order was largely symbolic representing the administration’s desire to reduce the size of the federal government and empower state and local authorities. Still the staff of the Office of Postsecondary Education between the March and October layoffs, was reduced by 50%. Campus officials, particularly those in the financial aid office, are understandably concerned about ED’s ability to manage the existing programs and continue to be a resource to the financial aid community moving forward.
April brought the White House Initiative to Promote Excellence and Innovation at Historically Black Colleges and Universities, which is intended to increase private sector partnerships and address barriers to federal grant funding. Later, in September, about $400 million in additional federal funding was provided bringing the total for the federal fiscal year to $1.34 billion. The additional funding will allow institutions to grow their endowments, expand research programs, upgrade facilities, strengthen campus security, and provide more support services for students and faculty development.
The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, and it included several regulatory changes impacting campuses, which are slated to go into effect as early as July 1, 2026. The most impactful parts of the OBBBA include the elimination of the Graduate PLUS program; new annual loan limits and lifetime borrowing caps for graduate students and parent PLUS borrowers; creation of a new income-driven student loan repayment plan and phase out of the existing ones; changes to institutional and programmatic accountability rules; and the creation of Workforce Pell. The student loan negotiated rulemaking sessions are complete and we’re awaiting the final rules from ED. The meetings regarding Workforce Pell and expanded accountability began this month and are expected to wrap up in January. See our July blog for more details about negotiated rulemaking and implementation of the new regulations.
In August, the administration announced a new directive for reporting admission data to the Department of Education for selected institutions. The data for applicants, admitted students, and enrolled students is to be broken down by gender, race, and program (undergraduate and graduate) and include standardized test scores and grade point averages. The first report must contain this data for the last five academic years. The purpose of the new reporting requirement is to ensure transparency around admissions decisions. Existing IPEDs reporting will be enhanced to request the additional information regarding applicants and admitted students that did not enroll.
In October, the Department of Education re-started cancellation of student loan debt for eligible borrowers, which had been on hold since March. In addition, it announced final rules regarding changes to the Public Service Loan Forgiveness (PSLF) program, namely the definition of an eligible employer.
At this writing, thanks to a lengthy government shutdown, it seems like we will have a quiet end to 2025 much to everyone’s relief. Barring any unexpected events 2026 will open with a bang when we get the final rules regarding institutional accountability and Workforce Pell.
Congratulations on making it through yet another rollercoaster year and thank you for all the hard work you do in support of your students, your colleagues, and your institutions. And remember, the Higher Education Assistance Group is just an email away if you need us.
Enjoy the holidays and have a safe and happy new year!
