The move could save money by keeping some common types of lawsuits out of the Monroe County court system.
Students who cannot prove their citizenship could be forced to pay out-of-state tuition, which is three times in-state tuition.
Indiana University is looking at ways to provide more options to students who need financial aid.
Monroe County Sheriff Jim Kennedy and Jail Commander Bill Wilson appear at odds over whether the county needs a new jail or just a transitional facility.
The jail was under supervision for a lawsuit for overcrowding in 1972. But some fear the same conditions could occur at other local jails.