Trump Administration's New 'STATS' Rule Threatens Federal Student Loan Eligibility for Low-Earning Programs

The Trump administration is implementing the Student Tuition and Transparency System (STATS) and Earnings Accountability rule, set to take effect in July 2027. This new policy could render certain undergraduate and graduate degree programs ineligible for federal student loans if their graduates fail to meet specific earnings benchmarks, particularly impacting fields like English, drama, fine arts, and some mental health programs. The rule comes amidst record-high student loan defaults.