Key Highlights
- The Trump Administration is proposing a new rule to cut federal student loan access for certain undergraduate and graduate programs.
- Critics argue the proposed rule requires “critical adjustments.”
- The Education Department estimates thousands of programs could be impacted by this new rule.
- Undergraduate programs where graduates earn less than high school graduates are at risk.
New Rule: Cutting Federal Student Loan Access for Low-Paying Majors
Donald Trump’s Education Department is considering a bold move that could fundamentally alter the landscape of higher education. Under Secretary Nicholas Kent has outlined a proposal to cut federal student loan access for certain undergraduate and graduate programs, those where graduates don’t earn as much as high school graduates.
Critics Weigh In
Not surprisingly, this rule is met with resistance. The American Council on Education, joined by nearly 40 other organizations, has called for “critical adjustments” to the proposal. Ted Mitchell, the council’s president, argues that the rule relies on “flawed metrics and an inadequate implementation timeline.” He adds, “A final product rushed to a consensus vote shortchanges all stakeholders, especially students.”
Impact on Programs
The proposed rule could have a sweeping impact. According to data published by the Education Department, 75.6% of undergraduate culinary and personal services programs would fail the new test. Health-related programs are also at risk, with 6.7% failing, as well as humanities/liberal arts programs at 8.2%. This is not to mention that an estimated 8.8% of undergraduate religious studies programs could be affected.
Philip Dearborn, president of the Association for Biblical Higher Education, has a different concern: “We don’t want it to be the single biggest defunding of religious higher education in the United States.” He’s asking the Education Department to adjust the framework or implement an exemption for religious studies programs at faith-based institutions.
Timeline and Response
The Education Department has opened submissions for public comment, and they are currently reviewing concerns. This comes after Trump’s One Big Beautiful Bill Act overhauled federal student loans for graduate students, capping new graduate loans at $20,500 per year.
While the rule is controversial, it’s grounded in a belief that postsecondary education programs must leave graduates better off financially. Critics see this as an attempt to address student debt and ensure taxpayers don’t subsidize programs that do not meet certain earning benchmarks.
You might think this is new, but… we’ve been here before with regulatory changes affecting higher education.
The difference now? It’s a direct hit on majors traditionally associated with lower salaries, like culinary arts or personal services. This could reshape how students choose their degrees and affect the job market in ways yet to be fully understood.