As colleges and universities prepare for the 2025-26 academic year, they face sweeping federal policy changes shaped by the Trump administration's recent actions.
These updates span student aid, Title IX, accreditation and institutional programming, raising compliance pressures and prompting strategic planning responses.
2025 Student Loan Repayment and Financial Aid Changes
On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act (OBBBA), a comprehensive reform of the federal student loan system.
The act will be implemented in phases over the coming years and introduces key changes that institutions and borrowers must monitor closely:
- Repayment system overhaul: Most existing income-driven repayment (IDR) plans — including SAVE, PAYE and ICR — are being phased out. New repayment options will be streamlined to two plans, including the Repayment Assistance Plan (RAP), which sets minimum payments at $10 monthly, extends forgiveness to 30 years and narrows eligibility for deferments and family-size deductions.
- Borrowing limits: The legislation imposes caps on graduate and professional student loans — $100,000 lifetime for most programs and $200,000 for medical and law degrees — and eliminates Grad PLUS loans. It also expands Pell Grant eligibility for workforce training programs.
These changes will require financial aid offices to revise advising materials, update repayment plan information and assist students in navigating borrowing caps and longer repayment periods.
Title IX Rule Changes for Colleges in 2025
In February 2025, federal courts struck down the Biden-era Title IX updates. As a result, the Department of Education (DOE) reinstated the 2020 Title IX regulations originally issued during the Trump administration.
Institutions must readjust policies, training programs and investigatory procedures to comply with these reinstated standards, particularly in areas such as gender identity definitions and harassment classifications.
The regulatory reversal requires higher education institutions to update their compliance frameworks and staff training to align with the 2020 requirements.
Accreditation Reform and Oversight Rules
An executive order signed April 23, 2025, titled "Reforming Accreditation to Strengthen Higher Education," directs a more stringent federal approach to accrediting bodies.
The Department of Education will allow institutions greater flexibility to switch accreditors and has lifted the prior moratorium on recognizing new accrediting agencies.
The DOE is also empowered to sanction accreditors for poor performance or civil rights violations, including those engaging in diversity, equity and inclusion (DEI)-related practices deemed unlawful.
Colleges undergoing program expansions or curriculum redesigns — especially in hybrid or alternative formats — should monitor these changes closely to ensure accreditation continuity and compliance with evolving federal oversight standards.
DEI Policy Changes and Impact on Universities
In January 2025, Executive Orders 14151 and 14173 effectively dismantled diversity, equity and inclusion (DEI) programs across federal agencies and contracts, mandating the termination of related positions, removing DEI references from websites and rescinding affirmative action requirements for federal contractors.
Additionally, Executive Order 14201 prohibits transgender women from participating in women's sports teams under penalty of federal funding loss.
While these changes target federal policy, universities may face indirect pressure — especially those connected to federal funding — triggering reviews of internal DEI offices, admissions materials and athletic policies.
Institutions receiving federal research grants, student financial aid or other government funding should expect increased scrutiny of their diversity-related programs and policies.
How Higher Ed Can Prepare for 2025 Regulatory Changes
What administrators should do now:
Monitor: Stay updated on rule-making timelines for Reducing Administrative Burdens (RAB) and Office of Federal Student Aid (FSA) implementation guidelines.
Audit policies: Reassess Title IX procedures, admissions language and athletic guidelines to reflect current federal standards and ensure compliance with new executive orders.
Train staff: Ensure student affairs, financial aid, legal and communications teams are briefed on evolving aid programs and compliance mandates through comprehensive professional development sessions.
Support at-risk populations: Provide targeted advising to graduate, professional, international and first-generation students adapting to new rules, including enhanced counseling services and resource allocation.
Engage counsel: Seek legal guidance to manage risks related to DEI program modifications, Title IX procedural changes and accreditation shifts that could affect institutional standing.
Communicate clearly: Deliver timely, transparent updates to students, staff and community stakeholders on what's changing, implementation timelines and institutional responses.
The Bottom Line for Higher Education in 2025
The 2025-26 academic year brings one of the most transformative regulatory periods higher education has faced in decades. Federal policy reversals affecting DEI programs, Title IX procedures and accreditation oversight create unprecedented compliance challenges for institutional leaders.
Institutions that remain agile, by staying informed, aligning policies proactively and communicating purposefully with stakeholders, will be better equipped to protect their students, maintain federal compliance and preserve educational continuity during this period of regulatory upheaval.