US Education Rule Bars Federal Loans for Low‑Earning College Programs

The U.S. Department of Education is rolling out a new accountability rule that will assess whether undergraduate and graduate programs leave graduates financially better off than peers who never attended college. Programs that fail to meet earnings thresholds—ranging from roughly $30,000 to $41,000 a year, depending on the state—for two of three consecutive years will lose eligibility for federal student loans and related aid. The first earnings calculations are slated for early 2027, with possible program designations beginning in the 2028‑2029 academic year.

The rule could affect more than 800,000 students, many of whom are enrolled in for‑profit institutions, and it threatens funding for several arts and music programs, including those at the Juilliard School, New England Conservatory, and Indiana University Bloomington. Critics argue that the earnings metric overlooks debt levels, long‑term income growth, and non‑monetary values of education, while supporters say it provides a consumer‑protection safeguard against excessive student debt.