U.S. Education Department Finalizes Rule Tying Federal Student Aid to Graduates' Earnings

The U.S. Department of Education has finalized a new rule, effective July 1, 2026, that will tie federal student aid access for higher education programs to the earning power of their graduates. Undergraduate programs must demonstrate graduates earn more than typical high school diploma holders, and graduate programs must show graduates earn more than typical bachelor's degree holders. Programs failing this earnings test in two out of three years will lose access to federal Direct Loans. The rule includes new exemptions and delays for certain programs.