The Trump administration is considering a new rule that would restrict federal student loan access for undergraduate and graduate programmes that do not lead to high-paying jobs. The proposal, announced by the Education Department in April, would cut eligibility for undergraduate programmes where typical graduates earn less than a high school graduate. Graduate programmes would need to produce earnings above the average bachelor's degree holder to remain eligible.
Under Secretary of Education Nicholas Kent defended the plan, stating: 'The Trump Administration’s proposed accountability framework is grounded in common sense: if postsecondary education programs do not leave graduates better off, taxpayers should not subsidize them.' He added that the framework would 'drive meaningful change' and address student debt that leaves many students worse off.
Thousands of programmes could be affected. Education Department data indicates that 75.6 per cent of undergraduate culinary and personal services programmes would fail the test, along with 6.7 per cent of health-related programmes and 8.2 per cent of humanities and liberal arts programmes. Religious studies programmes would also be impacted, with 8.8 per cent failing.
The proposal has drawn criticism from educational organisations. The American Council on Education, joined by nearly 40 other groups, urged 'critical adjustments,' arguing the rule relies on 'flawed metrics, an inadequate implementation timeline, and enforcement mechanisms that overstep congressional intent.' Council president Ted Mitchell warned that rushing the process 'shortchanges all stakeholders, especially students.'
The Association for Biblical Higher Education requested an exemption for religious studies, with president Philip Dearborn telling The Washington Post: 'We don’t want it to be the single biggest defunding of religious higher education in the United States.' The Education Department is currently reviewing public comments, a spokesperson said.
The move follows Trump's One Big Beautiful Bill Act, which caps federal student loans for new graduate students at $20,500 per year and $50,000 for professional programmes like law and medicine, starting next month.
