The Trump administration is pushing back on claims that its new higher education rules would prevent students from receiving federal loans for certain college degrees.
On Monday (September 28), the Department of Education disputed The New Republic’s report that students pursuing some lower-earning degrees could lose access to federal loans.
“First off, we’re not ‘banning’ any program. The federal government doesn’t set curriculum or programs,” the department said on X.
While colleges can continue offering programs that fail the new earnings test, students enrolled in those programs could lose access to federal Direct Loans.
The department said the rule is intended to hold colleges accountable for leaving students “worse off than if they never enrolled.” It argued that some programs leave graduates with heavy debt without improving their employment prospects.
“Federal student loans are not a welfare program for failing college programs,” the department said, adding that students deserve education and training pathways that prepare them for the workforce and transparency about programs that “will never pay off.”
Under the rule, undergraduate programs must have graduates who earn more than typical workers whose highest credential is a high school diploma. Graduate programs must exceed the earnings of typical workers with a bachelor’s degree. The Education Department will measure graduates’ earnings four years after they complete their programs.
Programs that fail the earnings test in two of three consecutive years will lose access to federal Direct Loans for at least two years, according to Federal Student Aid.
The New Republic reported in July that programs in fields including social work, art, religious studies, teaching assistance and music could be affected if their graduates fall below the administration’s earnings threshold.
Critics say the earnings-based approach could make some fields less accessible to students who cannot afford to pay for college without federal loans and overlook the broader societal value of lower-paid professions.
The new requirements stem from changes Congress made to the Higher Education Act under President Donald Trump’s 2025 tax and spending law. The Education Department later issued regulations implementing the earnings requirements.
The final rule takes effect July 1, 2027.
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