New Federal Earnings Rule Requires College Programs to Demonstrate Graduate Earnings for Federal Aid Eligibility

A new federal earnings rule, finalized by the U.S. Department of Education on July 1, 2026, mandates that all college programs receiving federal student aid must demonstrate that their graduates earn more than individuals who did not enroll in college. Programs failing to meet this standard in two out of three consecutive years risk losing access to federal Direct Loans, potentially limiting postsecondary options for students.