The rule takes effect in 2027 and targets fields such as religious studies, fine arts, music, and cosmetology. A 2021 federal analysis found that USC social work master's graduates had a median debt of $112,000, yet half earned $52,000 or less two years after graduation. While proponents point to precedent from the Obama administration, critics argue the move suppresses fields like philosophy and social work that provide societal value in the face of artificial intelligence.
Wednesday, October 21, 2026
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Trump Strips Federal Loans for Most Degrees Failing Earnings Test
US Politics22 days ago
The US government will no longer provide federal student loans for degrees whose graduates do not earn enough to justify the debt relative to those with fewer credentials. The Department of Education is expanding "gainful employment" regulations to disqualify nearly all college programs that fail an income test, requiring bachelor’s programs to out-earn typical high school graduates and master's programs to out-earn typical bachelor's holders to maintain federal Direct Loan eligibility.
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