Updated: 4 Nov 2026
Sweeping policy changes are transforming Higher Education.
ACCREDITATION: In October 2026, the Department of Education finalized a rule that will drastically alter the federal accreditation landscape. Among the changes is the elimination of two-year minimum experience requirement to become an accreditor and a requirement for accreditors to evaluate an institution’s academic freedom protections.
160
Number of federally accredited higher education institutions
Impact
Accreditors are critical to ensuring higher education institutions meet acceptable levels of quality. In addition to state authorization and federal certification, being accredited is one of the three pillars an institution must meet to access programs like federal grants, student aid, and loans. By weakening the requirements to become an accreditor, the rule could result in low-quality accreditors making decisions that determine the future of institutions.
The implementation of this rule will likely fundamentally alter the role of the federal government in higher education. In particular, the rule could facilitate ideological control over higher education institutions by evaluating and determining how institutions implement “intellectual diversity.”
Possible Federal Action:
- Members of Congress should send a letter to Secretary McMahon expressing concerns over the proposed changes and their impact on institutions.
- Congress should halt the implementation of the changes until impact hearings are held with institutional leaders.
- Students, families, campus leaders, and advocates should write to their members of Congress expressing concerns over the implications of the changes.
Possible State Action:
- Students, university leaders, and advocates should track the impact of these changes on their institution and share their stories with their representatives.
MINORITY SERVING INSTITUTIONS: The Department of Education ended discretionary grant funding for Minority Serving Institutions (MSIs) and determined that the programs were unconstitutional due to the consideration of race in the categorization of an institution as an MSI. Based on enrollment figures, an institution could be a Hispanic-Serving Institution, Predominantly Black Institution, Asian American and Native American Pacific Islander-Serving Institution, Alaska Native and Native Hawaiian-Serving Institutions, and a Native American-Serving Non-Tribal Institution. The Department has redirected some previously appropriated MSI funding to Historically Black Colleges (HBCU) and Tribal Colleges and Universities (TCU).
32
Hispanic Serving Institutions in Illinois in 2026
4
Predominantly Black Institutions in Illinois in 2026
$18M
MSI funding for Illinois cancelled
$730M
MSI funds redirected to HBCUs and Tribal Colleges
Impact
The cancellation of MSI funds creates unnecessary disruptions, gaps, and confusion for grantees. MSIs used their grant funds to support programming for all students in their institutions, not only those represented by their MSI status. As such, the cuts to MSIs are felt throughout the campus.
The redirection of MSI funds harms initiatives working to support students from historically marginalized backgrounds and advance equity. In redirecting funds to other entities and programs—including HBCUs, TCUs, and the Strengthening Institutions Program—positions equally important programs in competition with each other for the same pool of funds.
Possible Federal Action:
- Congress could hold a hearing on the reasoning behind the abrupt cancellation of MSI grants and invite MSIs to testify on how their students and institutions have been impacted
- Students, university leaders, and other advocates may want to write to Secretary McMahon detailing the impact of the loss of funds.
Possible State Action:
- The myriad federal pressures and funding uncertainties underscore the need for the Illinois General Assembly to ensure state funding is robust, equitable, and stable across Early Childhood, K-12, and Higher Education. The state should stay the course on key investments, including EBF, and adopt a reliable funding model, such as the Adequate & Equitable Funding (AEF) formula.
STUDENT AID: On August 7, 2026, a Southern Illinois federal judge struck down Illinois' Acevedo Act, the Retention of Illinois Students and Equity (RISE) Act, and the Illinois DREAM Act Scholarship program, finding that they unfairly provide benefits to undocumented residents pursuing higher education that are not available to all citizens. The three affected programs allow undocumented students who are residents of Illinois to qualify for in-state tuition, state aid, and targeted state-sponsored scholarships. The ruling applies to all Illinois public universities and community colleges, and impacts both new and continuing students.
20K
Students who may be impacted by the ruling.
Impact
Illinois' Acevedo Act, the Retention of Illinois Students and Equity (RISE) Act, and the Illinois DREAM Act Scholarship program ensured that a college education was affordable to all graduates of Illinois high schools. The Illinois Student Assistance Commission (ISAC) cannot distribute Monetary Assistance Program (MAP) grants or other state scholarships and grants to undocumented students, including awards already included in students’ financial aid packages. Given the loss of eligibility, thousands of students are at risk of dropping out or taking on substantial debt.
The ruling creates uncertainty for impacted students, families, and institutions. As a result, students may be discouraged from pursuing higher education, fearing unaffordability or hostility.
Illinois Response
- The 104th General Assembly passed HB 5093 (Public Act 104-0511), which expands the definition of residency for tuition purposes. This definition is expected to go into effect in June 2027 and restore eligibility for impacted students.
- The University of Illinois system opted to implement the expanded residency definition from HB 5093 early, with the definition going into effect for the 2026-2027 school year. In doing so, they are protecting all students’ access to in-state tuition at their campuses, but the newly-restricted access to state sponsored aid continues.
Possible Federal Action:
- Advocates and institutions should relay the impact of this ruling on their students, families, and institutional stability to their Congressional representatives. Congress could consider these stories when discussing the impact of this and other rulings on our higher education landscape.
Possible State Action:
- Institutions could assess which institutional scholarships that are available to all students (such as merit scholarships) continue to be accessible to undocumented students. Upon ensuring that the aid does not conflict with the recent ruling, institutions could invest in communicating eligibility with impacted students.
- The Governor’s Office could direct institutions to minimize harm through policies such as extending payment or enrollment grace periods, allowing students to defer admission where possible, and creating pathways for students to exit housing agreements or other institutional contracts if their enrollment changes.
- State leaders could accelerate the effective date of HB 5093 that confers residency benefits on students who attended or graduated from Illinois high schools.
- The General Assembly could refer to Minnesota’s tuition equity legislation that was upheld after a DOJ lawsuit as they consider how to continue supporting undocumented students in Illinois.
WORKFORCE PELL: The 2025 Budget Reconciliation act (OBBBA) established a Workforce Pell grant for shorter workforce training programs beginning on July 1st, 2026.
Impact
Workforce Pell will increase access to affordable workforce programs for students. Since the program counts towards students’ lifetime Pell eligibility, it is important to ensure Illinois’ implementation is effective in the little time provided to plan and vet programs.
Illinois Response
- The Community College Board, Board of Higher Education, Department of Commerce and Economic Opportunity, Department of Employment Security, Illinois Student Assistance Commission, Illinois Workforce Innovation Board, and the Governor's Office worked diligently to roll out this program in July 2026.
Possible Federal Action:
- Congress could work to address the $17 billion Pell shortfall to ensure students can reap the benefits of Pell. This is especially pressing when new programs like the Workforce Pell will be funded through this line item. This should be done while protecting students’ access to other education programs and aid sources.
Possible State Action:
- To ensure proper implementation, documentation, and public transparency, the state should ensure robust cross-sector data collection and reporting.
- Illinois advocates, agencies, and higher education institutions should monitor implementation of the program to ensure residents are protected from predatory programs and are adequately informed about their options.
HIGHER EDUCATION FUNDING: Over the past year, the federal administration has attempted to abruptly terminate over $3.2 billion in federal grant funding for institutions of higher education. This departure from longstanding federal grantmaking practices has been used to leverage federal funding to push universities to adopt administration priorities, a practice that extends beyond established legal requirements and longstanding understandings of institutional and academic autonomy.
$16.6 mil.
In federal grants terminated at University of Chicago
$49 mil.
In federal grants terminated across the University of Illinois system
$75 mil.
Paid by Northwestern to unfreeze $790 million in federal research funding
Impact
Universities rely heavily on federal funding to operate and to conduct important research, creating significant pressure to adhere to policies that might not otherwise be consistent with their priorities, or that might exceed appropriate federal intervention. In response to this tension, some institutions have preemptively complied with the administration by eliminating DEI-related programs or initiatives.
Possible Federal Action:
- Congress might hold hearings with the Department of Education and Department of Justice to assess their tactics and motives. These conversations would ideally result in a stronger process that protects universities and students as investigations play out.
- Congress might pass legislation limiting the USED's ability to unilaterally cancel grants.
Possible State Action:
- State agencies and advocates should work to ensure universities understand the bounds of new requirements and avoid over-compliance.
- Myriad federal pressures and funding uncertainties underscore the need for the Illinois General Assembly to ensure state funding is robust, equitable, and stable across Early Childhood, K-12, and Higher Education. The state should stay the course on key investments, including EBF, and adopt a reliable funding model, such as the Adequate & Equitable Funding (AEF) formula.
BORROWING LIMITS: The 2025 Budget Reconciliation Act (OBBBA) created new borrowing limits and definitions for “graduate” and “professional” borrowers. Instead of being able to fund the full cost of attendance with loans, students in graduate programs will be capped at $20,500 per year, while students in professional programs will be capped at $50,000 per year. Additionally, “professional” was defined to a limited number of degrees, such as Medicine, Dentistry, and Law, omitting fields such as teaching and nursing. On June 25th, 2026, federal courts halted the nationwide implementation of the new definition for “professional” programs, provisionally expanding the list of qualifying professions to include fields like nursing, while maintaining the loan caps and continuing to exclude education degrees.
46%
Percentage of all professional program borrowers who will experience financing gaps
Impact
These changes may lead to greater strains in the workforce in high-demand/low-wage careers like teaching, early childhood education and care, and social work. If the court order is lifted and the limited definitions move forward, the changes could impact high-demand/high-cost careers like nursing, counseling, and school psychology.
Illinois Response
- On May 19th, Illinois joined a lawsuit with 24 other states challenging the new professional and graduate categories
Possible Federal Action:
- Advocates should continue relaying to their Congressional representatives how the new borrowing limits will impact their educational opportunities. In turn, members of Congress might consider using their platform to elevate the ongoing impacts their constituents share.
- Congress could consider how these changes will increase affordability challenges for students and act to address the misalignment.
Possible State Action:
- The Illinois General Assembly should prioritize supporting higher education institutions as they work to keep tuition and fees affordable, reducing students’ reliance on loans. This can be done through revamping how the state funds institutions through the adoption of a reliable funding model, such as the Adequate & Equitable Funding formula (AEF).
LOAN REPAYMENT: The 2025 Budget Reconciliation Act (OBBBA) overhauled loan repayment options, eliminating the Income-Contingent Repayment, PAYE, REPAYE, and SAVE plans, and replacing them with a standard plan and a new income-based plan, the Repayment Assistance Plan (RAP).
$2K
Average student loan bill increase under new plans
Impact
The reduction in options for loan repayment, which went into effect on July 1st, 2026, will make it more difficult for students from low-income backgrounds to finance their education. Undergraduate borrowers under the REPAYE plan who were previously paying 5% of their discretionary income towards their loans could see their payments increase to 10% of their discretionary income.
Possible Federal Action:
- Congress and the Department of Education should expand repayment options to better serve borrowers in a variety of financial situations.
Possible State Action:
- The Illinois General Assembly should consider bolstering state financial aid programs, including its Monetary Award Program (MAP), to ensure higher education remains accessible for all students.
- The Illinois General Assembly should revamp its method of funding institutions of higher education through the adoption of a reliable funding model, such as the Adequate & Equitable Funding formula (AEF), that would support higher education institutions so they can work to keep tuition and fees affordable, reducing the reliance on student loans.
INTERNATIONAL STUDENT ENROLLMENT: More restrictive immigration requirements have led to a significant uptick in denials and revocation of visa applications for international students, and lowered student visa caps. As a result, new international student enrollment at U.S. colleges decreased by 7.2% in the 2024-2025 school year.
27+
Illinois universities with declining international student enrollment
62%
Drop in international enrollment at DePaul University
25%
Drop in international enrollment at University of Illinois Springfield
425
Staff laid off by Northwestern in July 2025 due to financial strains such as reduced international enrollment
Impact
International students and faculty have contributed to both short-term and long-term innovation and economic growth. While it is sensible to review applications for basic safety purposes, broader restrictions untethered to legitimate security concerns undermine the richness of university life, institutional stability, and the ability to attract and retain talent in the short and long term.
Possible Federal Action:
- Congress should consider how to balance legitimate security issues with responsible protections for international student visa seekers to ensure students looking to obtain their education in the United States – bringing tuition and talent – are able to do so.
- Members of Congress might send a letter to Secretary Rubio voicing their concerns over the visa changes and requesting that the State Department re-examine its student visa policies.
- Congress might request the Government Accountability Office (GAO) and/or the Office of the Inspector General to investigate the legality of revoking, denying, and capping international student visas and whether the Executive Branch has exceeded its authority.
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