Draft regulations would tie federal loan eligibility to graduate earnings and open a 30-day public comment period
The U.S. Department of Education released a Notice of Proposed Rulemaking (NPRM) that would create a new accountability framework for colleges and universities receiving federal student aid. Under the proposal, undergraduate programs could lose access to federal student loans if typical graduates earn less than high school graduates, while graduate programs would need to show earnings above those of typical bachelor’s degree holders. In some cases, programs could also risk eligibility for Pell Grants.
“If postsecondary education programs do not leave graduates better off, taxpayers should not subsidize them. This consensus-backed framework will drive meaningful change in postsecondary education, ending years of regulatory whiplash and addressing student debt that has left too many students worse off,” said Under Secretary of Education Nicholas Kent.
The department said the proposal is intended to address rising student debt and low financial returns for some programs as the federal student loan portfolio nears $1.7 trillion. The rule was developed through negotiated rulemaking with the Accountability in Higher Education and Access Through Demand-driven Workforce Pell (AHEAD) Committee and is open for public comment through May 20, 2026.
As the Lord Leads, Pray with Us…
- For Under Secretary of Education Kent as he reviews federal guidelines for education grants and student loans.
- For Secretary McMahon as she oversees efforts to strengthen college and university programs to prepare graduates for adequate incomes to offset student loan debt.
- For prudence for postsecondary students as they access opportunities to improve their future.
Sources: Department of Education
