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2 clusters · 19 sources · 2 days · First seen · Last updated

US student loan eligibility earnings test

Overview

The U.S. Department of Education has finalized new regulations to tie federal student loan eligibility to the earning potential of specific degree programs. Under the Student Tuition and Transparency System (STATS), scheduled for implementation on July 1, 2027, undergraduate programs must show graduates earn a median annual salary higher than high school graduates, while graduate programs must exceed the median earnings of bachelor’s degree holders.

Programs that fail to meet these benchmarks in two of three award years will be classified as ‘low-earning’ and barred from the Direct Loan Program for at least two years. Critics, including Ted Mitchell of the American Council on Education, have expressed concern that the rule could disproportionately impact essential but lower-paying fields such as social work, teaching, the arts, religious studies, and mental health. Mitchell noted that society relies on these professionals to address critical issues like homelessness and the fentanyl epidemic.

Entities

Donald Trump · U.S. Department of Education · One Big Beautiful Bill Act · American Council on Education · Student Tuition and Transparency System

Timeline

  1. about 16 hours ago

    [POLITICS] 9 sources
    U.S. Department of Education to restrict loans for low-earning degrees

    The U.S. Department of Education has finalized a rule that may bar federal student loans for college degrees that do not meet specific high-paying job requirements.

  2. 2 days ago

    [POLITICS] 10 sources
    U.S. Department of Education implements student loan earnings test

    The U.S. Department of Education is implementing a new accountability system that restricts federal student loans for degree programs whose graduates fail to meet specific median earnings benchmarks.

Sources

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