The Trump administration has proposed a new rule that would tie federal student loan eligibility to post-graduation earnings. The proposal, announced on April 18, 2026, would require undergraduate programs to meet or exceed the median earnings of working adults with only a high school diploma, while graduate programs would need to exceed the median earnings of those with a bachelor’s degree in the same field.
The proposed rule would replace the current debt-to-earnings metric with an earnings premium measure, which would compare the median earnings of graduates from a program to the median earnings of workers in the same field. Programs that fail to meet the earnings threshold for two out of three consecutive years would lose access to federal student loans.
The proposal is part of a broader effort to increase accountability in higher education and ensure that students are prepared for the workforce. The Trump administration has argued that the current system is failing students and taxpayers, and that a more outcomes-based approach is needed.
Quote: The proposed rule is a step in the right direction towards increasing accountability in higher education. Attribution: Nicholas Kent, Education Under Secretary
"The proposed rule would have significant implications for higher education institutions and students. Programs that fail to meet the earnings threshold would need to take corrective action to improve outcomes, and students who attend these programs may be less likely to receive federal student loans.
Key Points: Proposal: Ties federal student loan eligibility to post-graduation earnings.
Threshold: Undergraduate programs must meet or exceed median earnings of working adults with only a high school diploma.
Consequences: Programs failing to meet threshold for two of three consecutive years would lose access to federal student loans.
The proposal is currently open for public comment, and the Trump administration is expected to finalize the rule later this year. The rule would take effect on July 1, 2026, and would apply to all programs that participate in the federal student loan program.
As the higher education landscape continues to evolve, it’s essential for parents and educators to stay informed about the latest developments and their potential impact on students. By prioritizing outcomes-based accountability, we can work towards creating a more effective and efficient system that truly prepares students for success.
Learn more about how the Learning Success System can help your child thrive in this changing educational environment. Our comprehensive approach combines structured literacy principles with parental involvement and effort-based motivation, empowering students to reach their full potential. Start your journey today and discover the power of personalized learning.
