The state is losing students, said Sherri McLaughlin, a counselor in Jacksonville, Ill. She's seeing more students going out of state or opting for junior colleges. McLaughlin, who's been a counselor for 17 years, said she's even advising students differently in terms of what to ask schools.

"Instead of saying 'How many kids go to school here?' and 'What's your graduation rate?' now you're looking at asking the school, 'Where is your financial stability?'" McLaughlin said. "There's more difficult decisions being made now when you're choosing a school than they had to just a year ago."

Randy Dunn, president of the Southern Illinois University System, said its Carbondale campus is hearing from admitted students who aren't ready to commit. SIU has more than 6,000 students who receive need-based state aid. The school covered those grants this year but can't commit to backstopping them for the coming year, he said.

Illinois's higher education competitors are taking advantage of the state's fiscal floundering. Advertisements and solicitations from universities trying to get into the Illinois market are popping up, Dunn said.

"Some of our more savvy regional competitors see blood in the water, and there is clearly a concerted effort to then try to pick off some of those students in this uncertain environment," said Dunn.