Trump administration finalizes rule barring federal student loans for low-earning degrees

Published Jul 23, 08:03 PM UTC

The Trump administration has finalized a rule that will ban students from taking out federal loans for degrees that do not lead to sufficient earnings. The Education Department will use IRS data to compare graduates' salaries four years after graduation to those of high school graduates of similar age. Degrees in social work, art, religious studies, teaching aides, music, and cosmetic certification, as well as many for-profit programs, will be most affected. The policy is framed as accountability for higher education but has drawn criticism from educators and some conservatives who argue it devalues socially important but low-paying professions. Critics, including American Council on Education President Ted Mitchell and Alliance Defending Freedom Senior Counsel Gregory Baylor, warn the rule will harm fields like social work and humanities. The policy is set to take effect in 2027.