Federal Student Aid Eligibility to Shift Under New Education Department Earnings Test

A new U.S. Education Department "earnings test," implemented July 1, 2026, is projected to affect federal aid eligibility for approximately 2.5% of students, totaling about 488,900 individuals. This measure penalizes bachelor's and graduate programs whose graduates do not meet specific earnings thresholds compared to high school or bachelor's degree holders in their state. Programs failing the test for two out of three consecutive years risk losing access to federal student loans, potentially impacting enrollment and program offerings.