US college earnings loan rule

In mid‑July 2026 the United States enacted a new federal requirement that colleges, universities and short‑term certificate programs must demonstrate that their graduates earn at least the median wage of a high‑school‑only worker in the state. Programs that cannot meet the $36,000 annual earnings benchmark risk losing eligibility for federal student loans, with schools given two years to provide proof of compliance.

A few days later the Department of Education clarified the rule’s implementation. It will evaluate undergraduate and graduate programs against state‑specific earnings thresholds ranging from roughly $30,000 to $41,000 per year. Programs falling short for two of three consecutive years could be barred from federal aid as early as the 2028‑2029 academic year. The first earnings calculations are slated for early 2027, and the rule is expected to affect up to 800,000 students, including many enrolled in for‑profit institutions and arts programs such as those at the Juilliard School and Indiana University. Critics argue the metric ignores debt load and long‑term earnings growth, while supporters view it as a consumer‑protection measure.