The American education landscape underwent a seismic shift in 2025, marked by sweeping federal policy changes that impacted everything from university funding and student loans to the daily lives of K-12 students. Across the country, institutions grappled with new financial pressures, while students and educators navigated a rapidly changing environment defined by immigration crackdowns, new classroom rules, and a fundamental restructuring of the federal government's role in education.
Key Takeaways
- The Trump administration used federal funding as leverage to influence university policies on diversity and disciplinary actions.
- New immigration enforcement targeted international students, leading to arrests and a decline in new applications.
- Major changes to student loan repayment plans, including the elimination of the SAVE program, are set to increase costs for millions of borrowers.
- Classroom cellphone bans became widespread, with nearly half of all states implementing restrictions.
- The U.S. Department of Education began a process of dismantlement, with significant staff reductions and program transfers to other agencies.
Federal Pressure Reshapes Higher Education
Colleges and universities across the nation faced unprecedented pressure from the federal government this year as the Trump administration initiated a strategy of withholding research funding to compel institutional changes. The administration frequently cited concerns over the handling of antisemitism on campuses as the basis for these actions, but the demands often extended to broader conservative priorities, such as the elimination of diversity, equity, and inclusion (DEI) programs.
Columbia University was the first major institution to be targeted, ultimately losing access to $400 million in federal funds. The university later reached an agreement with the administration that included a $200 million payment and significant alterations to its hiring practices, academic departments, and disciplinary policies.
"It was a comprehensive agreement that we were able to reach with Columbia, and it is our hope that this is going to be a template for other universities around the country," Education Secretary Linda McMahon stated following the deal.
Other institutions, including the University of Virginia, also faced federal pressure. While UVA managed to avoid a financial penalty, it agreed to policy changes and granted the federal government access to certain admissions data. Meanwhile, negotiations with Harvard University over a potential agreement, rumored to involve a payout as high as $500 million, remain ongoing, though officials have repeatedly suggested a deal is imminent.
Immigration Crackdown Chills Campuses
The administration's tough stance on immigration created a climate of uncertainty and fear for many students in 2025. A significant development was the arrest of multiple international students linked to the pro-Palestinian campus movement, with the government signaling its intent to deport them.
The case of Mahmoud Khalil, a former Columbia student leader, drew national attention after he was arrested and detained, causing him to miss the birth of his first child. The administration has argued that such students pose a threat to U.S. foreign policy, invoking a rarely used law to justify deportation proceedings. These students are now engaged in legal battles to remain in the country.
New Rules for International Students
In addition to enforcement actions, the administration introduced new rules for foreign students applying for visas. Most notably, a mandatory social media check is now part of the application process, raising concerns about free expression and privacy.
This crackdown has had a tangible effect on international student enrollment. Fanta Aw, CEO of the Association of International Educators, noted the chilling effect on students. "I think students have pretty much assumed that anything is open for interpretation or misinterpretation, and so as a result, they’re extremely cautious when it comes to engaging with social media moving forward," she said.
The impact has also been felt in K-12 school districts with large immigrant populations, which have reported a noticeable decline in attendance as families grow more fearful of government interactions.
Student Loan System Undergoes Radical Overhaul
Millions of student loan borrowers are facing higher monthly payments after the administration announced a complete overhaul of the repayment system. The most significant change was the termination of the Saving on Valuable Education (SAVE) plan, an income-driven repayment program that had lowered costs for approximately 7 million borrowers.
"For four years, the Biden Administration sought to unlawfully shift student loan debt onto American taxpayers," said Under Secretary of Education Nicholas Kent, defending the decision. Those previously enrolled in SAVE must now switch to a different plan, which will almost certainly result in higher payments.
Further changes included in a recent Republican megabill will reduce the number of repayment options to just two by 2028:
- A standard plan with a repayment term of 10 to 25 years.
- A Repayment Assistance Plan requiring 30 years of payments before forgiveness is possible, an increase from the previous 20-25 year timeframe.
Even the Public Service Loan Forgiveness (PSLF) program is under review, with the administration indicating it plans to remove some previously eligible employers from the program's list.
Classroom Crises: Falling Scores and Phone Bans
While federal policies dominated headlines, K-12 schools continued to wrestle with two persistent internal challenges: declining literacy rates and the pervasive distraction of cellphones.
The Worsening Reading Crisis
Reading proficiency, an issue that has plagued educators since the COVID-19 pandemic, continued its downward trend. Early in the year, the Nation’s Report Card revealed that reading scores for fourth and eighth graders had fallen even lower than the disappointing results from 2022.
In September, data showed that 12th-grade reading scores from 2024 were at their lowest level since before 1992. The problem extends to adults, with a 2020 Gallup study estimating that the reading crisis costs the U.S. economy $2.2 trillion annually.
"These results are both heartbreaking and tragic," said Alicia Levi, CEO of Reading is Fundamental. "We need to take action." In response, many states have shifted their instructional methods to the "science of reading," a phonics-based approach credited with improving scores in states like Louisiana.
The Rise of Cellphone-Free Schools
The movement to ban cellphones from classrooms gained significant momentum in 2025. Nearly half of all U.S. states now have laws restricting phone use in schools, though the policies vary widely. Some states simply require districts to create a policy, while others have mandated strict classroom or all-day bans.
New York became the largest state to implement an all-day ban. "I know our young people succeed when they’re learning and growing, not clicking and scrolling," Governor Kathy Hochul said. Schools implementing these bans often use systems like Yondr pouches, which lock phones away until the end of the school day. While popular with educators, some parents and students have raised concerns about safety and personal property rights.
The Future of the Education Department
Perhaps the most fundamental change of 2025 was the move to dismantle the U.S. Department of Education. The process began in March when Secretary McMahon laid off half of the agency's employees. Soon after, President Trump signed an executive order directing her to dismantle the department as much as legally possible.
The President assured that core functions like Pell Grants, Title I funding, and disability programs would be "fully preserved" and redistributed to other federal agencies. "But beyond these core necessities, my administration will take all lawful steps to shut down the department," he stated.
The downsizing has severely impacted divisions like the Institute of Education Sciences, Federal Student Aid, and the Office of Civil Rights, which has struggled with case backlogs. The department has already announced deals to transfer some programs to the Departments of Interior, Labor, and Health and Human Services, signaling a new, decentralized future for federal education oversight in the United States.
