New Earnings Test Will Have Limited but Concentrated Impact on Federal Student Aid

A new report indicates that approximately 2.5 percent of students receiving federal student aid will be enrolled in programs expected to fail the U.S. Department of Education's new earnings test. This measure, launched on July 1, 2026, will penalize bachelor's or certificate programs whose graduates do not earn more than high school graduates in the same state for two out of three consecutive years, with full penalization starting in 2028.