Feds propose rules on low-earning college degrees

(The Center Square) – The U.S. Department of Education has proposed new rules aimed at holding colleges and universities accountable for programs that leave students with low-earning jobs as the federal student loan debt nears $1.7 trillion. The proposal, outlined in a Notice of Proposed Rulemaking, would establish an accountability framework designed to address concerns that many students are financially worse off than if they had not attended college. The plan is backed by the Working Families Tax Cuts Act, which is a part of President Donald Trump’s One Big Beautiful Bill Act, which aims to cut taxes, according to the department. Under the proposal, programs that fail to meet earnings benchmarks in two out of three consecutive years could lose access to federal student loans. If failing programs account for at least half of an institution’s federal financial aid recipients or funding, they could also lose eligibility for Pell Grants.