New Federal Earnings Rule to Impact Student Loan Access for College Programs

A new federal earnings rule, finalized by the U.S. Department of Education on July 1, 2026, will require every college program accepting federal student aid to demonstrate that its graduates earn more than individuals who did not enroll in college. This rule, implementing the 'Do No Harm' earnings standard from the One Big Beautiful Bill Act, replaces previous gainful employment and financial value transparency rules with a new Student Tuition and Transparency System (STATS). While most programs are expected to pass, the rule could limit access to federal student loans for programs that do not meet the earnings threshold, potentially affecting students in fields like social work or early childhood education. Colleges must warn students if a program is at risk of losing federal aid.