North Carolina community colleges yesterday banned illegal immigrants from seeking degrees, creating a new policy that is among the most restrictive in the US.

Community college system President Scott Ralls said he based the decision on the advice of the state attorney general's office, which said last week that federal law appears to ban states from enrolling illegal immigrants in state colleges and universities.

"We sought that advice and we plan to follow that advice until further clarification," Ralls said of the attorney general's guidance.

The decision takes effect immediately at the system's 58 campuses and reverses a policy that allowed illegal immigrants, paying out-of-state tuition that more than covers the cost of instruction.

It comes despite the federal government's assertion last week that it has no authority over admissions at North Carolina colleges and despite Governor Mike Easley's request that the colleges remain open to all students.

Ralls said he will continue to seek clarification of federal law regarding the eligibility of illegal immigrants for post-secondary education and that another policy change is possible. Ralls, who became president of the system this month, said this is the fourth time since 2001 that the system has changed its policy on illegal immigrants.

"It's the issue of the day," Ralls said. "We're trying to navigate our way as best we can."

Several immigration law experts say they know of no state that bars illegal immigrants from attending public colleges and universities. Officials in Easley's office said last week that if the state's colleges and universities followed the attorney general's advice, North Carolina would be the only state to restrict admissions based on immigration status.

Easley asked the colleges to continue admitting students regardless of their immigration status.

Easley's office released a brief statement about the community college decision yesterday: "It is odd the community colleges would ask for clarification on the law and then change the policy before they get the clarification."

Undocumented students will still be allowed to enrol in non-degree programs, including general equivalency classes, English as a second language courses and classes for high school credit.

Of the 300,000 students enrolled in degree programs at the state's community colleges, 112 are undocumented; those students will be allowed to remain, the statement from the community colleges said.

The advice from the office of Attorney General Roy Cooper came in a May 6 advisory letter, which cited a federal law that deems illegal immigrants ineligible for public benefits including post-secondary education.

It said the department of homeland security was responsible for enforcing the law and described its interpretation as "unsettled". However, the letter recommended that the community colleges return to a 2001 policy that prohibited illegal immigrants.

Campuses had been allowed to set their own policies since 2004, and about a third excluded illegal immigrants. But in November, then-President Martin Lancaster required all schools to admit students regardless of immigration status.

The policy sparked so much controversy that the community college system asked Cooper's office for an opinion.

The department of homeland security responded to the advice on Friday, saying it had no authority over admissions at North Carolina colleges.

On Tuesday, Cooper's office said in a statement it was seeking more guidance from federal officials. Spokeswoman Noelle Talley said that the community colleges' 2001 policy had never received a legal challenge.

Cooper's office sent its advice only to the community colleges, but it also applied to the state's universities.

Yesterday, University of North Carolina System President Erskine Bowles sent a letter to the university chancellors and the board of governors.

It said that the UNC system would not change its policy of admitting illegal immigrants at out-of-state rates until it received further clarification of federal law.

"In this instance, there sure seems to be considerable legal disagreement about what the relevant federal law really says," Bowles wrote.

The UNC system says that only 27 of its approximately 200,000 students are in the country illegally.

The community college decision yesterday drew the eyes of immigration activists around the country. Several local and national groups celebrated the announcement, saying it would discourage illegal immigration.

"We're delighted," said Ron Woodard of Cary, head of the group NC Listen, which favours a crackdown on illegal immigration. "If it's illegal to be in the country, why would it be legal to go to college?"

Advocates, however, said they were confounded and angry. More than 80 North Carolina community groups, including Hispanic resource centres, religious groups and unions, announced their support yesterday for allowing illegal immigrants to attend college.

Tony Asion, director of the statewide Hispanic advocacy group El Pueblo, said he was confused by the decision in light of statements from federal officials.

"We're forgetting that we're talking about people's lives here," Asion said. "Some of these young people, if you picked them up and took them back to their home country, they would be completely out of place. They're steeped in American culture. But we're telling them, 'We don't really want you here.'"

Meanwhile, the campuses were scrambling to change their admissions policies, some of them for the second time in six months.

Jerri Haigler, a spokeswoman for Central Piedmont community college, said the school was still awaiting guidance on how it should screen new applicants.

Stephen Scott, president at Wake Technical community college, said another policy change will require another round of staff training.

"There's much controversy around the issue so it's not a surprise," Scott said of the decision. "Our role is to educate students, and we will follow the rules set down for us."