New Federal Rule to Cut Off Student Loans for Low-Earning College Programs

A new rule from the Trump administration, finalized this month, will eliminate federal student loans for college programs whose graduates consistently earn low incomes. Programs in cosmetology, arts, and some mental health fields are identified as facing the highest risk. The policy aims to address the national student loan default crisis and ensure higher education leads to economic advancement. The Education Department has not yet released the final data on which programs will be affected, but estimates suggest about 3% of public and nonprofit programs and 33% of for-profit programs could fail the new earnings test.