In 2021, the Illinois Board of Higher Education (IBHE) developed the Illinois Higher Education Strategic plan, entitled “A Thriving Illinois: Higher Education Paths to Equity, Sustainability, and Growth,” in collaboration with a broad group of stakeholders and partners. As the Board outlined three goals built on this input, additional focus groups involving 170 people were held regionally and for specific stakeholder groups to identify opportunities and barriers to achieving the goals. Then, the Board convened a 37-person Advisory Committee to shepherd the strategy-development process, engaging nine Design Work groups of 200 stakeholders, including Board members of the IBHE, the Illinois Community College Board (ICCB), the Illinois Student Assistance Commission (ISAC), institution trustees, presidents, faculty, staff, community organizations, advocates, philanthropy, and other experts, to develop detailed recommendations. The strategies outlined in this plan are designed to close equity gaps, create educational paths that are financially sustainable for students and higher education institutions, and foster economic and institutional growth for a thriving Illinois.

The DFI Program was established by the Illinois General Assembly and signed as Public Act 093-0862 (Appendix B) on August 4, 2004. Only students interested in employment in education-related fields are awarded this highly competitive fellowship. The Board of Higher Education shall provide administrative assistance for the Program Board and shall distribute funds appropriated by the General Assembly for this purpose in accordance with decisions made by the Program Board.

The amendments to the DFI Act make comprehensive changes to the Act, including revisions to definitions, grant eligibility, the structure and functions of the Program Board, institutional representative responsibilities, award conditions, and overall program policy and eligibility. These changes were effective as of the 2025-2026 academic year/Fiscal Year 2026.

IBHE, in partnership with the Governor’s Office, has initiated changes to the DFI Fellowship Program materials to ensure full statutory compliance. The primary changes include:

• Establishing an undergraduate Pell Grant eligibility requirement for all applicants and clarifying that continuing fellows remain eligible even if their institution later falls below the Pell threshold, provided all other conditions are met.

• Implementing a new institutional eligibility threshold requiring that only public universities that have at least 45% Pell Grant recipients (3-year average) can participate.

• Specifying qualifying employment to include full-time faculty or staff roles at Illinois institutions of higher education or full-time state administrative positions in elementary, secondary, or higher education agencies.

• Implementing mandatory repayment under procedures developed by IBHE; all grants subject to the Illinois Grant Funds Recovery Act. Defining a “good faith effort” obligation to seek qualifying employment for up to five years post-graduation.

• Prior recipients of an award may not be penalized if the failure to fulfill the conditions of the award is because the recipient is no longer eligible due to changes made by this amendment.

Institutions must meet the 45% Pell threshold, calculated on a three-year rolling average using the most recent data available to IBHE. Institutions that fall below this threshold will be removed from new applicant eligibility but may re-enter participation once the Pell percentage again meets or exceeds 45%. Renewal fellows at those intuitions remain eligible for continued funding provided they meet all individual criteria and academic progress requirements.

For convenience, below is the link to the newly adopted statutory language as enacted November 2025: https://ilga.gov/documents/legislation/104/HB/PDF/10400HB3065sam002.pdf

The Program Board shall be comprised of 11 members and shall be appointed by the Board of Higher Education. The Board shall name the chairperson of the Program Board. The Program Board shall name the vice chairperson of the Program Board and make any necessary subcommittee appointments. Persons appointed to the Program Board shall include, but need not be limited to, individuals who are in leadership positions in public institutions of higher education, including community colleges. Program Board members shall serve 2-year terms and shall continue to serve until a replacement or reappointment is determined. There are no term limits for members of the Program Board. Illinois institutions that grant doctoral degrees must have representation on the Program Board.

The Program Board shall be responsible for:
(a) Establishing policy for administration of the DFI grant program authorized under this Act, including program guidelines for the operation of the DFI and criteria to promote placement of grant recipients.
(b) Creating the application materials, setting application deadlines, and approving applications for participation in the DFI grant program.
(c) Establishing subcommittees or panels as necessary to review applications and promote student placement.
(d) Reporting annually to the Board on program outcomes and results, including lists of new and continuing scholarship award recipients by institution, level, and field of study; lists of recipients retained in the program from the previous year; lists of placements of most recent program graduates; a description of institutional efforts to place program graduates; and a description of policy and administrative actions designed to increase placement of grant recipients.
(e) Disseminating information regarding the DFI to qualified institutions of higher education for distribution.
(f) Prioritizing fields of study for awarding DFI funds annually.
(g) Meeting at least 3 times per year.

In determining the recipients of awards, the Program Board shall favor recipients who received awards in previous years and who maintain conditions of eligibility as set forth in Section 7 and have made satisfactory academic progress toward a degree, as determined by each institution of higher education, as long as no student receives assistance for more than 4 years.

In administering awards, the Program Board shall:
(1) determine the award amount annually;
(2) direct the Board to deliver the awards to the institution of higher education to disburse to the recipients, conditioned upon the recipients' satisfactory academic progress; and
(3) attempt to achieve distribution of the awards among qualified institutions of higher education so that the awards are distributed equitably within fields of study.

A recipient who received an award in a previous year may not be disqualified from receiving a subsequent award if the applicant's qualified institution of higher education no longer meets the Pell Grant criteria described in Section 2, as long as the applicant and the qualified institution of higher education maintain all other conditions of eligibility.

Grant funds shall be distributed by an institution of higher education to grantees during the period of DFI enrollment, not to exceed 12 months per award.

Chair and Vice-Chair are appointed by the Illinois Board of Higher Education for a two-year term.

Chair:

• Serve as liaison between Program Board and Illinois Board of Higher Education.

• Serve as spokesperson for the Board.

• Appoint sub-committees to establish and follow through with policies and procedures.

• Plan and conduct Board meetings.

• Ensure that all required reports are submitted in a timely manner.

Vice Chair:

• When appropriate, conduct meetings and perform duties of the Chair.

• Maintain current information on applicants and current/previous Fellows.

• Prepare required and related reports as requested.

• Work with the Program Board and Institutional Representatives to implement program’s policies and procedures.

• Organize, direct and coordinate the application process for DFI funding with the admissions process at participating institutions.

• Ensure that all required reports are submitted in a timely manner.

• Administer program awards.

• Lead efforts to market/promote the program statewide.

• Coordinate DFI Board and selection meetings.

• Promote program and coordinate relations with Institutional Representatives and students.

Only public universities that have at least 45% Pell Grant recipients (3-year average) can participate. IBHE will review Pell data to determine program eligibility each year. Each cooperating DFI institution has an Institutional Representative who acts as local administrator of the DFI award.

"Institutional representative" means the designated individual who is responsible for coordinating DFI activities at each qualified institution of higher education.

(1) be a qualified institution of higher education;
(2) commit to providing leadership, information, and placement opportunities for DFI fellows;
(3) designate an institutional representative; and
(4) recover funds provided to a student who does not meet the conditions of an award under Section 10 of this Act and return the funds to the Board.

(1) actively recruit students who will be eligible for DFI awards and verify to the Program Board that applicants for DFI financial assistance meet all eligibility requirements;
(2) maintain records for award recipients, including DFI application materials, contracts, and records of award payments;
(3) provide award recipients with academic and support services, such as mentoring, counseling, and other activities that would enhance the chances for degree completion and success in achieving the goals of the DFI;
(4) supervise the payment of awards from funds awarded by the Program Board;
(5) collect, process, and forward to the Program Board, by the announced deadline each spring, all new applications and renewal forms from eligible students; and
(6) assist award recipients who complete their program of study in seeking a full-time teaching or administrative position at an Illinois institution of higher education or a full-time position as an employee of this State in an educational-related capacity; such positions may include, without limitation, administrative positions in State elementary, secondary, or higher education agencies.

Tax Reporting Guidelines (pdf)

A student shall apply directly to the qualified institution of higher education that he or she plans to attend.

All new applications and renewal forms shall be submitted by the institution of higher education on behalf of the student, with the institution's verification and endorsement.

--An "Illinois resident" means any United States citizen or lawful permanent resident of the United States who meets at least one of the following requirements:
(1) has earned a degree from an institution of higher education authorized to operate in this State; or
(2) is a registered voter in this State and has lived in this State for a period of at least 3 years prior to applying for a grant under this Act.

The status of Illinois residency of a student at the time of initial matriculation in the DFI shall hold for his or her entire time in his or her graduate or professional study at the DFI institution.

An individual is eligible for an award under the provisions of this Act if the Program Board finds:
--Have received an undergraduate Pell Grant at any point during their bachelor’s program.
--Submit all required materials: transcripts, references, essay, Pell verification, etc.
--Meet all statutory and institutional standards for satisfactory academic progress.

Demonstrates academic ability to pursue a graduate or professional degree, as evidenced by the following:
--Minimum grade point average of 2.75 on a grade scale of 4.00=A in the last 60 hours of undergraduate work;
-- Admission as a full-time student, as defined by the institution of higher education, for at least 9 months of the year pursuing a doctoral, master's, or post-baccalaureate professional degree program at a qualified institution of higher education;
--Sign an agreement to meet this Act's employment conditions if a DFI award is accepted; and
--Meet the scholastic requirements and eligibility for financial assistance required by the institution of higher education in which he or she is enrolled as a DFI participant. The student must complete a FAFSA prior to application to verify financial need.

In order to maintain eligibility in the program and in order to be considered for renewal of the DFI fellowship a fellow must:

• A minimum grade point average of 2.75 (scale 4.0 = A);

• Show progress toward completion of the requirements of the course of study;

• Continue to meet financial need requirements;

• Submit requested/required materials in a timely manner.

• Submit renewal application (if eligible) each year by the deadline.

(a) “Good faith effort" includes actively seeking employment and maintaining contact with the institutional representative and Program Board. (b) Conditions for acceptance of a DFI award are that the recipient shall agree to do the following:

• (1) accept a teaching or nonteaching full-time appointment at an Illinois institution of higher education;

• (2) accept a position as an employee of this State in an administrative, educational-related position, as determined by the Program Board, for the period equal to the number of years that he or she was a participant in the DFI; such positions shall include, without limitation, administrative positions in State elementary, secondary, or higher education agencies; or

• (3) make a good faith effort to secure such a position for a time period no less than 5 years.

If the obligation of the award is not met, repayment of the funds awarded shall be required according to procedures developed by the Board. However, a recipient of an award may not be penalized if the failure to fulfill the conditions of the award is because the recipient is no longer eligible due to changes made by this amendatory Act of the 104th General Assembly.

• DFI award recipients in doctoral programs are eligible for up to four years of support. Those in master’s degree programs may receive awards for up to two years. To receive the full annual award, a student must begin enrollment with the beginning of the fall semester or quarter. Students whose first enrollment of the year begins with the second semester or quarter may receive no more than half of the annual award for the year.

• Funds must be disbursed on a monthly basis or in the same manner as other institutions’ stipends.

• Funds may not be disbursed in lump sums for the entire semester or year.

• Awards must be encumbered by June 30 of each year.

• If the academic and/or enrollment status of a recipient changes in such a way as to affect his or her eligibility status, the institution shall take immediate action to make appropriate adjustments in payments and inform the administrative office.

• Holding an assistantship or employment while on a DFI award is subject to institutional policy.

• Award recipients shall hold no other substantial scholarship or fellowship concurrently with the DFI.

• Leaves of absence must have the recommendation of the institutional representative, be approved by the institution, and be approved by the DFI Program Board.

• Award stipends will not be paid during the leave of absence. Students taking a leave more than 12 months may reapply for a new award for the length of time remaining in the original award. The resolution does not jeopardize continuation of award.

• Deferral of stipends for fellows will only be allowed for health and/or family emergency. (A fellow can take a leave of absence for one year and come back the following year. For example: a Ph.D. student takes a leave of absence in the third year of funding. He/she can come back for the fourth year of funding. The fellow gives up one year of funding. The fellow would get a total of three years of funding.) Institutional representatives must notify the administrative office of the length and conditions of an approved leave as soon as it is granted to allow reallocation of awards to other students. Additional notification should be given by April 15 for leaves to begin September 1; by October 15 for leaves during the second half of the academic year.