Student Aid Struggles & Shifting Federal Oversight

Federal aid office disruptions fuel growing enrollment risks

Complaints About Federal Student Aid Office Rise Sharply

A NASFAA survey of 500+ aid offices found that 72% of institutions reported disruptions in July, up from 59% in May. Student confusion also jumped to 51%. Layoffs and staff shortages at the Office of Federal Student Aid are driving concerns that unreliable aid may push students to abandon enrollment. The Education Department dismissed the survey as misleading.
Key Takeaway: Institutions should prepare for heightened student anxiety around aid and proactively communicate support options.

State Department Revoked 6,000 Student Visas

The U.S. State Department revoked over 6,000 student visas, citing alleged crimes and political ties. About 200–300 revocations involved accusations of “support for terrorism,” often linked to pro-Palestinian activism. Critics call the actions politically motivated, while colleges warn of chilling effects on international enrollment.
Quick Insight: Heightened visa scrutiny may hinder recruitment of global talent, pressuring institutions to expand international student support.

Survey: Colleges Expect to Reduce Student Support Budgets

A new survey shows many colleges plan to scale back tutoring, advising, and mental health services due to falling federal funding. Students most in need could see fewer resources, threatening retention and completion goals.
Key Action: Leaders should explore alternative funding or partnerships to sustain critical support programs.

Education Department’s Anti-DEI Guidance Struck Down

A federal judge ruling vacated the Education Department’s February 2025 anti-DEI directive, which had threatened funding for institutions running equity programs. The court ruled the guidance violated procedural norms, restoring space for colleges to continue DEI initiatives.
Quick Insight: Institutions may move forward with DEI programming, though ongoing legal battles signal continuing uncertainty.

Education Department Delays Put Parenting Students In A Bind

Delays in CCAMPIS childcare grants are leaving student-parents without reliable childcare, forcing some to miss class or risk withdrawal. Advocates argue the disruption undermines equity for parenting students.
Key Takeaway: Colleges may need to offer temporary supports or bridge funding to help student-parents remain enrolled.