Trump Administration to Cut Federal Funding for Low-Earning Degree Programs

The Trump administration is set to implement a new regulation in July 2027, called the Student Tuition and Transparency System and Earnings Accountability, which will discontinue federal student loans for degree programs whose graduates consistently earn below their respective career median incomes. This policy aims to address record student loan defaults, with the Department of Education using IRS data to assess graduates' earnings four years post-completion. Programs failing to meet earnings targets in two out of three consecutive award years could lose eligibility for federal financial aid, including Pell Grants.