After the November 2024 presidential election in the U.S., the higher education sector will be witnessing several challenges and opportunities. Funding for research universities could be uncertain.  There could be significant reforms, potentially aimed at reducing federal loan availability or revising repayment terms. Some may view this as a path to personal responsibility, while others worry it could limit college access for low-income students. There may be reduced federal support for diversity programs, impacting minority-serving institutions and campuses. At the same time we may see a shift toward practical, career-oriented education that meets the demands of both students and the evolving workforce. It will be crucial for higher education leaders to engage with policymakers and adapt in order to maximize benefits for students, institutions, and society as a whole.

Higher education leaders should prepare to adapt swiftly, balancing responsiveness to new policies with the need to advocate for broad access, inclusion, and innovation. Collaboration and adaptability will be crucial in navigating the new and evolving educational policy landscape. The higher education sector will probably see initiatives to limit federal oversight and empower states in education policy, which could have notable implications for how financial aid is managed and distributed across colleges and universities. Higher education may also see an array of initiatives focused on cost savings, increased alignment with workforce demands, and a streamlined, state-driven approach to education policy. Here are some areas that could emerge in the next few months.

First, strengthening workforce development and career pathways. There will be emphasis on Career and Technical Education (CTE). The administration may prioritize vocational training, apprenticeships, and industry-aligned certifications, which can provide students with clear, job-ready skills. This focus could enhance employment outcomes and help meet the country’s demand for skilled labor. There will probably also be incentives for Partnerships with Industry: Colleges and universities may be encouraged to establish stronger partnerships with businesses, allowing them to co-develop programs that respond directly to the needs of the labor market. This approach can help bridge the gap between academic programs and real-world job requirements, making graduates more employable and competitive.

Second, a focus on affordability and cost efficiency, meaning support for cost-cutting measures. The new administration might encourage institutions to operate more efficiently, potentially offering incentives for schools that reduce administrative overhead. This could include promoting digital transformation, minimizing non-essential expenses, and investing in cost-effective solutions that improve access without compromising quality. This will come with a push  for innovative funding models. For example, alternative funding structures, such as Income Share Agreements (ISAs), could receive federal endorsement, allowing students to pay for their education based on post-graduation earnings. These models can reduce upfront costs and share risk between students and institutions, particularly benefiting those with limited access to traditional loans.

Third, a push for alternative credentialing and skills-based learning. Support for non-traditional pathways will be important. The administration may support flexible, modular learning opportunities like short-term certificates, stackable credentials, and online courses. This approach can help students quickly gain valuable skills and credentials, making higher education more accessible to diverse populations, including working adults and those seeking career changes. In parallel, there will be a push for the recognition of Competency-Based Education (CBE) models. By supporting competency-based models, the administration could enable students to earn credentials based on demonstrated skills rather than time spent in class. CBE is particularly valuable for experienced professionals seeking formal recognition of skills they’ve acquired on the job.

Fourth, the increase of state-driven innovation and autonomy. The new administration will likely empower states to lead in higher education reform: with a more state-centered approach, the administration could allow states greater flexibility in shaping higher education policy. This may open up room for states to experiment with programs tailored to their regional workforce needs and demographic challenges, potentially increasing institutional responsiveness and innovation. This relates to a more decentralized policy-making, allowing states to lead could enable greater innovation and efficiency, as states with similar demographic profiles can focus on the issues most pressing to their local communities. States with a high concentration of industries like technology, agriculture, or healthcare can target resources toward specialized programs that align with their economic priorities.

Fifth, there will be an enhanced support for veterans and military families. This increased educational benefits for veterans will be a priority and will come by expanding educational resources and financial support for veterans. This administration may focus on ensuring that veterans and their families have greater access to postsecondary education, possibly increasing funding for the GI Bill and related programs. In parallel, we will probably see an expansion of veteran-focused programs: Colleges and universities that develop and maintain veteran-friendly programs and services, such as flexible scheduling, career counseling, and mental health resources, may see increased support and recognition. This initiative could improve retention and success rates among veteran students.

Sixth, policy in higher education will focus on entrepreneurship programs and economic growth, as well a s small business development.  A focus on entrepreneurial education could empower colleges and universities to provide more programs in entrepreneurship, innovation, and business management. By equipping students with skills in finance, marketing, and management, institutions can support graduates who aim to launch startups, particularly in high-demand fields. This will probably come with incentives for Tech and STEM education. In order to drive economic growth, the administration may support increased science, technology, engineering, and mathematics funding, encouraging students to enter fields critical to future innovation. Universities that establish robust STEM programs and research partnerships could be in a favorable position to receive increased federal support.

Finally, it is likely that the new administration will push hard to promote transparency and accountability in education outcomes. For example, through enhanced data collection and reporting: policies focusing on transparency could empower students to make informed decisions by providing clearer data on graduation rates, job placement, and return on investment. Institutions that emphasize and achieve strong post-graduation employment rates may be recognized and incentivized, potentially raising the overall quality of educational outcomes nationwide. This will also relate to aligning outcomes with institutional funding. By tying funding to measurable outcomes, the administration could encourage schools to focus on the long-term success of their graduates. In theory, this accountability could foster a results-driven approach, where programs and services are continuously improved to support student success.