Education Department Finalizes Rule Linking Federal Aid to Graduate Earnings

The U.S. Department of Education has issued a new rule that ties federal financial aid eligibility directly to the post-graduation earnings of students. Under this framework, both undergraduate and graduate programs must demonstrate that their alumni achieve specific income thresholds relative to other degree holders. Programs consistently failing these standards risk losing access to federal Direct Loan and Title IV funding, with the policy set to begin in July 2027.