As universities like Purdue and the University of Illinois face significant housing shortages just weeks before the academic year begins, they are incentivizing students to cancel their housing contracts. Purdue initially reassigned housing for 700 students but reversed the decision following backlash, offering a $4,000 reduction instead. The University of Illinois is offering $2,000 and 100 meal tickets to returning students willing to give up their dorm space to accommodate incoming freshmen, who are required to live on-campus. This year's housing crisis is attributed to factors such as a competitive rental market and an uptick in enrollment after recent protests. University officials emphasize the importance of first-year housing for student success, citing increased graduation rates among those who live on campus. Despite the unusual circumstances, universities are adapting by modifying living arrangements to maximize capacity.