A federal court decision in July has upended college affordability for thousands of undocumented students in Illinois. On July 24, a federal judge appointed by President Donald Trump struck down parts of three Illinois laws that allowed eligible undocumented students to pay in-state tuition rates at community colleges and public universities and to receive state financial aid. Nearly 25,000 students at colleges and universities in Illinois are undocumented, and many now face steep cost increases starting immediately.
What changed
Judge David Dugan of the Southern District of Illinois struck down parts of three Illinois laws on July 24, siding with the U.S. Department of Justice in its argument that these provisions violate federal law because they grant a benefit to noncitizens who live in state that citizens who live out of state cannot get. The Court ruled that the Acevedo Act’s provisions allowing individuals who are not citizens or permanent residents of the United States to receive in-state tuition, including Section 6-4a of the Public Community College Act, are unconstitutional as they are preempted by federal law. The U.S. District Court also held that provisions of the Retention of Illinois Students and Equity (“RISE”) Act and the Illinois DREAM Act are unconstitutional to the extent that they provide educational benefits to individuals who are not U.S. citizens.
The application that undocumented students across Illinois would have submitted to receive state financial aid, known as the Alternative Application for Illinois Financial Aid, is no longer available. “This means that students who have submitted or planned to submit the 2026-27 Alternative Application, such as Illinois undocumented students, cannot be considered for this program for the 2026-27 school year,” a notice about the ruling from the Illinois Student Assistance Commission reads. An estimated 2,150 undocumented students received state financial aid through one of the agency’s programs for the 2025-2026 school year, including MAP grants for students with low income.
Why it matters
The cost difference between in-state and out-of-state tuition is substantial. At the University of Illinois Chicago, out-of-state tuition is nearly triple the price of in-state tuition for full-time undergraduate students. For families already navigating financial barriers to immigration status adjustment, the sudden loss of in-state tuition eligibility can mean the difference between attending college or withdrawing. The Illinois Coalition for Immigrant and Refugee Rights advised students to save copies of their financial aid award letters, tuition bills and communication from their college or university, and to consult with their academic advisers or financial aid or admissions officers.
This ruling also signals broader federal enforcement. The Department of Justice has sued more than a dozen states over policies that provide in-state tuition rates and other educational benefits to undocumented students. So far, DOJ lawsuits have led to similar policies being struck down across four other states: Texas, Kentucky, Oklahoma and Nebraska.
Way forward
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Document current awards and billing. If your undocumented client is already enrolled and receiving in-state tuition or state aid for the 2025–2026 academic year, preserve copies of all award letters, tuition bills, and enrollment confirmations. These may be relevant for appeals or future remedies.
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Consult financial aid offices immediately. Reach out to your client’s college or university financial aid office to understand whether they will honor existing in-state rates for continuing students or if tuition will be recalculated retroactively. Colleges are still determining their own policies.
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Monitor appeal status. Dugan, a Trump appointee, paused his ruling for two weeks to give Illinois officials time to appeal. A spokesperson with Illinois’ attorney general’s office said officials are reviewing the decision and evaluating their options. The legal outcome remains unsettled; an appeal to the Seventh Circuit Court of Appeals could delay enforcement.
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Explore alternative funding sources. Review whether your client qualifies for private scholarships, emergency grants, or payment plans offered by Illinois institutions directly. Some colleges may adopt institutional scholarships to offset the loss of state aid.
Disclaimer
This article is provided for informational purposes only and is not legal advice. Fola Editorial is a software company, not a law firm. For advice on how this ruling affects your specific situation—including whether to pursue state-level remedies, appeal strategies, or education financing options—consult a licensed immigration attorney. Immigration policy and law can change without notice. Always verify current policy against the primary source and official government guidance.