New Rules Limit Financial Aid Based on Graduate Earnings

The Education Department has approved a set of new regulations designed to affect financial aid for college programs. These changes focus on ensuring that graduates from certain programs earn higher salaries than individuals with less education in their field.

Under the new rules, which were finalized by the Trump administration, many undergraduate programs must prove that their graduates make more money than those in their state who have only a high school diploma. Similarly, graduate programs are required to show that their alumni earn more than individuals with a bachelor’s degree in comparable fields.

This policy aims to improve the financial outcomes for students who complete these programs. If a program’s graduates typically earn less than their peers with less education, the program risks losing access to federal financial aid.

This decision could impact thousands of college programs, particularly those in low-wage sectors, as they may face challenges in meeting the new standards. The goal is to ensure that students enrolling in these programs will be in a better financial position after graduation than they would be without enrolling.