Colleges with low-earning grads could lose access to student loans. Here's why.

February 7, 2026

TL;DR

A new federal provision requires college programs to prove graduates earn more than high school graduates.
Programs failing this earnings test for two of three consecutive years may lose access to federal student loans.
This change could affect approximately 40,000 U.S. college students, with arts, religion, and trade programs most at risk.
The measure aims to ensure degrees provide a financial return on investment and reduce taxpayer exposure to defaulted loans.
Most programs, particularly in STEM fields, are expected to pass the earnings test.

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