US Ties College Loan Eligibility To A New Earnings Test
Undergrad programs must out-earn high school graduates, grad programs must beat bachelor's holders, or lose loans after failing twice in three years.
- The federal student loan portfolio totals $1.7 trillion, with default and delinquency rates climbing for years.
- Institutions lose all Title IV aid, Pell included, once half their students sit in failing programs.
- The first earnings test runs in 2027, with lost eligibility possible starting the 2028-2029 award year.
Why it matters: A government that fueled two decades of student debt now grades what it funded.
U.S. Department of Education, Fact Sheet: Trump Administration Implements Accountability Provisions of the Working Families Tax Cuts Act ↗ · Jul 12, 20267/12/26