New Federal Earnings Rule to Affect 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 that accepts federal student aid to demonstrate that its graduates earn more than individuals who never enrolled. Colleges submitted their first data by October 1, 2026, with the first earnings test in early 2027. Programs at risk of losing federal student aid will require new disclosures to students. This rule, implementing the 'Do No Harm' earnings standard from the One Big Beautiful Bill Act, aims to protect students from programs that do not offer economic returns.