Longitudinal research shows many undergraduates recovered psychologically after the pandemic, but new pressures are emerging around academic integrity and AI. Michigan State University researchers tracked 248 students from 2020–21 through 2025 and reported rising life satisfaction, falling loneliness and improved social connections—signs campuses say justify renewed investments in student services. Yet that recovery coincides with an uptick in disputes over generative AI: some students are adopting AI tools defensively to avoid false accusations from unreliable AI‑detectors, and several have sued institutions after being flagged. Colleges are grappling with contradictory priorities—supporting mental health and belonging while policing new forms of suspected cheating. Campus leaders and faculty must reconcile evolving pedagogy, detection technology limits and equitable enforcement, officials say, or risk harming students already vulnerable to disciplinary action and mental‑health strains.