With the 2025 enrollment cycle almost behind us, we wanted to reflect on a few of the biggest shakeups that contributed to a tumultuous year in the enrollment landscape. It’s important to take stock of what defined higher ed over the past 12 months, and how that could impact the landscape in the years to come.
Turmoil in the Department of Education
On March 20th, an executive order was issued calling for the Department of Education (DoEd) to begin the process of shutting down its operations. Mass layoffs began, contracts were cut, and certain functions of the DoEd were directed to other federal agencies. These policies are currently on hold while they are litigated in court, but the impact has sent ripples throughout the higher ed landscape.
One of the biggest results of this has been the uncertainty surrounding the future of the IPEDS database. It’s a popular resource for many enrollment teams, and its disruption could leave many institutions in the dark without another source of student data. That’s why it’s become more important than ever to invest in other, more reliable student data going forward. We discussed this topic at length in another blog recently — you can read it here.
Enrollment Demographics Continue to Shift
The long forecasted demographic cliff began in descent, and we can see changes playing out on campuses nationwide. Over the course of the cycle, data revealed steady declines with affluent students and white students, while students of color and low-income students have seen continued growth. If you’d like more enrollment insights from this cycle’s post-May 1 deposit numbers, you can find them here.
In the years to come, altering enrollment strategies to fit these new student demographic demands will become essential to remain competitive. Comparative, real-time enrollment data is invaluable for identifying and monitoring populations of students that can help institutions overcome the challenges of a changing landscape.
The “Dear Colleague” Letter Targets DEI in Higher Ed
This may have been the biggest shock to the enrollment profession during the entire cycle. On February 14, the new administration in charge of the DoEd released a “Dear Colleague” letter to colleges and universities across the country. It outlined new interpretations and regulations around Diversity, Equity and Inclusion (DEI) policies and threatened to withhold federal funds for those who do not comply.
This had a major effect on higher ed in two major ways. First, some institutions decided to pull back on anything that could be interpreted as being related to DEI including scholarships, academic programs and certain enrollment practices. Several schools that were deemed noncompliant with these new standards saw their federal funds frozen, dealing a major blow to their operational budgets.
This led to the second effect: many schools tightened their budgets in anticipation of potential federal funding freezes. While higher ed budgets have already been tightening, the threat of losing a major resource caused an even more pronounced withdrawal in spending.
Moving forward, it’s unclear whether the specific interpretations laid out in the “Dear Colleague” letter will be struck down in court or enforced to the level that was originally presented. However, the impacts on budgets and enrollment practices will remain for the foreseeable future. With such a small margin for error, it’s more important than ever for institutions to make the right investments and enrollment decisions. If you want to find out how to use real-time data to better evaluate your budget choices, you can learn more here.
A (Relative) Return to Normalcy for FAFSA
Heading into this cycle, there was a lot of angst surrounding the rollout of the FAFSA after the difficulties of the prior year. If you need a refresher on what that situation entailed, you can read a recap here. But after many months of bated breath, the FAFSA launched on time with no issues.
We can only hope that this means FAFSA will remain stable for the foreseeable future — as of now, it’s set to launch on time this year. However, with the aforementioned DoEd shakeups, there is room for concern around FAFSA funding and execution moving forward. It could be prudent to invest in extra financial aid resources in anticipation of further disruptions.
Book time with our team to see how MARKETview’s real-time data can keep you in the know throughout the enrollment cycle on the student populations that matter most to your goals.