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Dept of Ed. to cut student loans from any program if people with no college make more $

Posted on 7/19/26 at 3:58 pm
Posted by hawgfaninc
https://youtu.be/torc9P4-k5A
Member since Nov 2011
64318 posts
Posted on 7/19/26 at 3:58 pm

quote:

This month, the U.S. Department of Education began rolling out a new accountability test that most colleges and universities will soon have to pass.

The test itself is simple: If an undergraduate program's graduates don't earn more than workers who never went to college, that program could be cut off from federal student loans. The same goes for any graduate program whose graduates earn less than someone with only a bachelor's degree.

"If a program cannot show that it leaves its graduates financially better off than if they had never enrolled, it should not be underwritten by federal taxpayers," said Under Secretary of Education Nicholas Kent in a recent statement.

But this new test, known as "do no harm," raises some thorny questions about the purpose of college. Like: Is it just about making more money?

Some advocates for postsecondary arts education think not.

"Earnings is only a small piece of that puzzle," said Lee Ann Scotto Adams, executive director of the Strategic National Arts Alumni Project (SNAAP), a nonprofit that studies the careers of arts graduates.

She and Doug Dempster, the president of SNAAP, worry the new test might lead colleges and universities to preemptively slash low-earning creative arts programs in music, theater, studio art and design. Dempster says that could lead to a further devaluing of jobs that are critical to a well-functioning society.

"We know we need nurses. We know we need journalists. We know we need early childhood educators," he said. "We don't know how many artists we need, but I can guarantee that if you eliminate access, we will impoverish our cultural life nationally."

How the new standard will work

The new earnings test comes courtesy of last year's One Big Beautiful Bill Act, which included a slew of big higher education policy changes meant to address rising concerns over the cost and value of college.

Higher education experts across the political spectrum told NPR the test sets a pretty reasonable expectation: In many states, federal data shows, graduates of bachelor programs will have to earn a minimum of about $30,000 to $41,000 a year for their program to pass.

"This is really a very low floor," said Christopher Madaio, a senior adviser at the nonprofit The Institute for College Access & Success. "I mean, high school earnings is not an exceedingly high metric for a program to meet."

Programs fail the test when they don't meet the earnings requirement for two out of three consecutive years.

The current test does not take student loan debt into account, which means there's no way to distinguish between a graduate who is struggling with low pay while being debt-free and a graduate who is struggling with low pay while also paying off tens of thousands of dollars in loans.

The Education Department says it will begin calculating the first year of graduate earnings in early 2027, and "some programs could be designated as low-earning outcome programs beginning in the 2028-2029 [financial aid] award year."

The kinds of programs that are likely to fail

According to Education Department estimates, the vast majority of undergraduate and graduate programs should easily pass the new earnings test.

But more than 800,000 students attend a program that would likely fail the measure, according to department data. Roughly half of those students are enrolled in for-profit schools, which already have a reputation for shortchanging students.
This post was edited on 7/19/26 at 3:59 pm
Posted by kywildcatfanone
Wildcat Country!
Member since Oct 2012
140710 posts
Posted on 7/19/26 at 4:00 pm to
That will cut 90% of degree programs. Let's shrink those campuses and give those dollars back to the taxpayers.
Posted by neverputstheseatdown
Member since Nov 2025
26 posts
Posted on 7/19/26 at 4:02 pm to
This is nothing new! There were colleges that had to cut their bank teller program 10 years ago because nobody was making any money. There will be no changes from this. The rules are already in place.
Posted by UFFan
Planet earth, Milky Way Galaxy
Member since Aug 2016
3638 posts
Posted on 7/19/26 at 4:02 pm to
I think this is a good move, but no, it won't cut 90% of degree programs.

It might cut something like 10-20% of degree programs, but it won't cut 90%. The article says that a vast majority of college programs will still get funding after these cuts. (PS I love how everybody on Tigerdroppings says what college they went to in their Avatar, yet also says that almost all college programs are worthless.)
This post was edited on 7/19/26 at 4:07 pm
Posted by HarryHoudini
Member since Oct 2025
1386 posts
Posted on 7/19/26 at 4:05 pm to
quote:

That will cut 90% of degree programs. Let's shrink those campuses and give those dollars back to the taxpayers.


College is just an excuse to party and bang for 4 years. Total waste of time for most people when you think about it.

Unless you’re going to be a dr engineer or something of that caliber, you’ll learn way more on a job site than you ever will in a classroom
This post was edited on 7/19/26 at 4:12 pm
Posted by Everyday Is Saturday
Member since Dec 2025
2415 posts
Posted on 7/19/26 at 4:08 pm to
It’s kinda like borrowing money to pay for a new vehicle at dealership, immediate depreciation hits hardest when driving off of the lot and continues over term of loan and beyond.

May the Dept of Commerce not ever speak to the Dept of Education.
This post was edited on 7/19/26 at 4:10 pm
Posted by NotoriousFSU
Atlanta, GA
Member since Oct 2008
12593 posts
Posted on 7/19/26 at 4:09 pm to
So are they admitting 90% of majors are a scam since the government got involved in student loans? Convincing financially illiterate young people to take on tens of thousands of dollars of debt for a worthless degree before they’ve ever held a real job and had to support themselves.
Posted by UFFan
Planet earth, Milky Way Galaxy
Member since Aug 2016
3638 posts
Posted on 7/19/26 at 4:12 pm to
You can argue that a college degree shouldn't be required for so many jobs (that's a separate argument that I tend to agree with), but with the way the world currently is, college degrees are required for a lot of jobs. Usually college will increase your long term earning potential unless major in music or something.

This move will cut funding from the handful of majors that actually do have a negative return on investment.
Posted by HarryHoudini
Member since Oct 2025
1386 posts
Posted on 7/19/26 at 4:13 pm to
quote:

You can argue that a college degree shouldn't be required for so many jobs (that's a separate argument that I tend to agree with)


Yeah that’s more what I was getting at.

But yes it is def advantage to have one then not in our world today.
This post was edited on 7/19/26 at 4:15 pm
Posted by DennisQuaid
Metry
Member since Nov 2023
352 posts
Posted on 7/19/26 at 4:17 pm to
I want to just stop paying my loans back
Posted by Everyday Is Saturday
Member since Dec 2025
2415 posts
Posted on 7/19/26 at 4:18 pm to
quote:

College is just an excuse to party and bang for 4 years. Total waste of time for most people when you think about it.


Like your redundancy point (taking some of same HS courses). Appreciate your point on some degrees.

Disagree with most all other sentiment. I’m newly retired after 30yrs in an IOC. I don’t achieve this without college and even going back to college for 2 masters degrees…all served me and my family well).

First to go to college in my family. Confidence, Personal broadening & development, seizing opportunities mindset, relationship building, learning what you like and dislike (and do not underestimate the value of learning to close doors on dislikes…I promise from experience), opening up the mind, possibilities, I could go on.

And, not all colleges are equal. There are a wide range of potential opportunity across universities.

As for cost, govt student loan debacle, paper degrees, etc…hear you. Don’t throw baby out with bath water. I am living proof.
This post was edited on 7/19/26 at 4:20 pm
Posted by Bayou Warrior 64
Member since Feb 2021
1125 posts
Posted on 7/19/26 at 4:18 pm to
quote:

Let's shrink those campuses and give those dollars back to the taxpayers.



I agree 100%. The whole educational system (public elementary & high schools schools, public universities, etc.) in our country is going to have a massive reformation over the next 5 to 10 years. Those that resist or drag their feet will likely perish. The Lafayette Parish School System is being decimated by a charter school system which is rapidly expanding. This is what happens when you have educators run what is often the largest employer in a parish. It will take a person with a specialized business background to stabilize or reverse the damage. Locally, U-L-L is in dire straits financially. It is slowly leaking out thru the media that much of the financial distress was due to substantial losses supporting the school's athletic programs. U-L-L charges an obscene number of fees to their students. Only in a clown world with a monopolistic environment can one just say 'shut up and pay it'. The superintendents and chancellors of these educational systems had better wake the hell up and realize they are about to crash & burn.
Posted by BigJman
Member since May 2021
516 posts
Posted on 7/19/26 at 4:20 pm to
quote:

So are they admitting 90% of majors are a scam since the government got involved in student loans? Convincing financially illiterate young people to take on tens of thousands of dollars of debt for a worthless degree before they’ve ever held a real job and had to support themselves.


This.

If you were to ask any private lender to back a fricking gender studies degree for tens of thousands of dollars, they would tell you to get lost because obviously they would never expect to recover that investment.

These colleges have no reason to absolve these non lucrative programs with Federally guaranteed money and the individual that is easily getting the loan will be in student debt hell indefinitely.
Posted by KingOfTheWorld
South of heaven, west of hell
Member since Oct 2018
7892 posts
Posted on 7/19/26 at 5:02 pm to
(no message)
Posted by LSUFanHouston
NOLA
Member since Jul 2009
41365 posts
Posted on 7/19/26 at 5:23 pm to
quote:

Earnings is only a small piece of that puzzle," said Lee Ann Scotto Adams, executive director of the Strategic National Arts Alumni Project (SNAAP), a nonprofit that studies the careers of arts graduates.


That argument went out the window as these same educators allowed college costs to spiral out of control.

I think there are societal benefits of a liberal arts education but it’s no longer affordable
Posted by Bjorn Cyborg
Member since Sep 2016
36250 posts
Posted on 7/19/26 at 5:35 pm to
quote:

But this new test, known as "do no harm," raises some thorny questions about the purpose of college. Like: Is it just about making more money?


No, it’s not. But also don’t expect a government subsidized loan for your gender studies degree.

Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
480875 posts
Posted on 7/19/26 at 5:37 pm to
quote:

But this new test, known as "do no harm," raises some thorny questions about the purpose of college. Like: Is it just about making more money?


I am a big "college is a lot more than just the potential salary" guy, but that comment isn't about student loans.

The poor students who would get more out of college than potential salary don't have to take out SLs b/c they are intelligent enough to get scholarships
Posted by Horsemeat
2025 Contributor Of The Year
Member since Dec 2014
15659 posts
Posted on 7/19/26 at 5:40 pm to
Hows about just getting the feds out of the student loan game instead?
Posted by neverputstheseatdown
Member since Nov 2025
26 posts
Posted on 7/19/26 at 5:52 pm to
You know, 20% of the people with a bachelors degree will end up millionaires compared to only 5% with only a high school and one percent with no high school. I understand one of the top reasons why Trump did so well with whites with no college education (he got 79% of that vote) it’s because people without a college education think those with the college education cut in front of them. I realize you regret not taking advantage of the opportunities to advance yourself with education. But realize this country‘s freedom is built upon the highly educated in the innovations they created
This post was edited on 7/19/26 at 5:56 pm
Posted by KingOfTheWorld
South of heaven, west of hell
Member since Oct 2018
7892 posts
Posted on 7/19/26 at 5:52 pm to
My .2 cents…

I guess some would call my degree useless. I double majored in political science and journalism. My brain is not STEM-friendly. I gravitate toward language, history, politics, philosophy. I’m not dumb, but I’ve struggled my whole life with higher math above long division. I couldn’t solve a quadratic equation right now with a gun to my head. Without my ex-wife I’d have never passed college algebra. Squeezed by with Cs and Ds in HS.

I think there’s a place for social sciences, liberal arts and classical education. I’m a firm believer that to be a well-rounded individual you need to have at least a basic understanding of the history of America, the world and civilization, law, language and writing, economics, philosophy and religion, art and music. Sadly we’ve moved away from this in primary and secondary education. Many kids today couldn’t tell you who our first president was. The world would be a poorer place without the Sistine Chapel, Shakespeare, Machiavelli, Mozart and Steely Dan.

Of course there are many useless degrees, even from prestigious schools. The question comes do we not pay for higher education in social science degrees as opposed STEM? I lean toward neither. Earned scholarships is a different discussion.

Another related question arises: of fairness. Should Sally, whose parents are hard working, tax paying Americans, not get her teaching degree paid for as opposed to Johnny who is good at math and wants to be an engineer? It can be a sticky wicket, but I see both sides.

Lastly, education for education’s sake is a good thing. I want fully educated Americans. It’s not only about income. Not everyone can be, or needs to be, a chemist or an engineer.
This post was edited on 7/19/26 at 6:12 pm
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