Plans Targeting DEI, Foreign Aid, Title IX, Accreditation and Loans Have Students, Borrowers and Schools on Edge

In the days since inauguration, the Trump Administration has launched sweeping reforms. As promised by Vance and Trump on the campaign trail, higher education (ed) is a “First 100 Days” priority, with calls to eliminate federal funding from DEI programs, overhaul student loan policies, revamp accreditation and curriculum programs and more, impacting operations, compliance and funding for colleges and universities across the US.

The latest headlines around taxes on students and student loan borrowers bring into focus just how swift and targeted these efforts might be. Already on unsteady ground, a college education could become a lot more expensive (and uncertain) if tax relief for student loan forgiveness expires, or if previously non-taxable scholarships and grants become taxable income, or if SAVE plans are repealed, requiring millions of borrowers to switch to plans that cost several times as much.

The simultaneous assault on federal funding tied to DEI programs and U.S Agency for International Development (USAID) foreign aid research projects is equally as unsettling. In 2023, the federal government gave universities almost $60 billion for critical research. In this moment, behind closed doors, schools are scrambling to find alternative funding sources or risk turning off the lights on students and staff that were hard at work a week ago.

Status 101

Even for an industry that was bracing for change, the precision and pace of that change has resulted in chaos, confusion and even paralysis among key decision makers. Despite cultural unrest and cries to rebalance the scales on college campuses through Title IX rollbacks and accreditation reform, there are still roughly 20 million people in the US higher ed system, with growth projected for the next several years.

That is because higher ed still has one of the greatest value propositions of any industry – our workforce depends on the knowledge and skilled labor that is cultivated on college campuses. College graduates earn more, have better job prospects, greater job security and yield a more productive workforce, resulting in a stronger economy, more tax revenue on higher earnings, and less reliance on government services.

Still, in the eight years since Trump first set his sights on overhauling education, institutional trust has been waning. This past fall, there was a 5 percent dip in freshman enrollment. A decade ago, most (56 percent) Americans had a great deal of confidence in higher ed, and today that number has fallen to just 36 percent, with almost as many reporting little or no confidence. This shift is feeding the appetite to overhaul the system.

Zeroing in on the Important Stakeholders

Like most things right now, the higher ed industry has a volatile stakeholder audience. Federal and state governments are staring down big changes to funding models, accreditation and regulatory oversight. Colleges and universities are navigating a highly polarized environment, balancing financial stability, compliance, and public perception. Both conservative and progressive advocacy organizations are mobilizing to influence policy, particularly on issues like student debt relief, free speech, and DEI. Loan providers are navigating fragility and uncertainty in eligibility and repayment structures. Parents are leaning in with greater scrutiny in response to rising tuition, uncertain funding opportunities and Ideological concerns. And students are making life decisions based on all the above.

To say the stakeholder universe is complicated is an understatement. But stakeholders today are almost always complicated. Making sense of the chaos means taking the time to analyze data and understand what is driving perception. That means really grasping who are the most important decision makers, their key influencers and spheres of influence, target audience psychology and motivations to engage, relevant trending misinformation, and more. Effective engagement is both a science and an art – that’s why we spend important time orchestrating the type of engagement that we know will make a difference. It’s the single biggest factor in changing the narrative and driving policy outcomes, especially in uncertain times.

What Next?

In this unpredictable climate, there’s not much appetite to take on the Administration out of fear of retribution, but there is a lot of space to focus on reputation management and risk mitigation. Organizations looking to regain footing and pave a path forward will be focused on:

Flipping the narrative: Sidestepping cultural traps to focus on data validating the economic value of a college education.
Building bipartisan relationships: Identifying policymakers across the aisle in support of common ground solutions that promote workforce development and economic security.
Aligning decision makers: Enlisting key congressional champions and relevant committees to advocate for alternative funding solutions.
Partnering for impact: Aligning with partner universities, student advocacy groups, specialty practice organizations, economists, businesses and community organizations to amplify concerns.
Leveraging state-level allies: Deploying state elected officials and decision makers to fill gaps in support and funding.
Weaponizing the power of storytelling: Tapping into existing emotion and bias to assert viral storytelling that is equally as compelling as the opposition.

Communicating through Change

Higher ed isn’t the only industry feeling flat footed. Key to weathering turbulent times is the ability and willingness to communicate effectively – preparing for many scenarios and understanding what changes mean for your most important stakeholders. Identifying and threading that needle for audiences is core to our mission, and key to our client’s success. Sometimes we call it a crisis, but more often it’s the ongoing need to be nimble, responsive, and opportunistic all at once. What key players in higher ed communicate today will determine who is listening, enrolling, funding, and validating higher education into the future.

About Molly

Molly Douglas is a Senior Vice President for DDC specializing in innovative stakeholder engagement designed to motivate people and move issues. Molly is the leader of DDC’s education practice and an expert in brand development, reputation strategy and strategic growth supporting some of DDC's most impactful clients. She brings her passion for communications and a smart game plan to everything she does.

Higher Ed Braces for a Tough 4 Years