Colleges with low-earning grads could lose access to student loans. Here's why.
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Some college programs whose graduates earn less than workers with only a high school diploma could lose access to federal student loans under the Republicans' "big, beautiful bill" act, a change that could impact about 40,000 U.S. college students, according to a recent analysis. Edited by Alain Sherter In:
Some college programs whose graduates earn less than workers with only a high school diploma could lose access to federal student loans under the Republicans' "big, beautiful bill" act, a change that could impact about 40,000 U.S. college students, according to a recent analysis.
About 2% of U.S. associate and bachelor's degree-granting programs are at risk under the new provision, called "do no harm," which takes effect in July, according to research from the HEA Group, a higher-education research firm.
The provision, part of the GOP tax and spending law's overhaul of student loans, requires programs to show that graduates earn more than high school graduates. College arts, religion and trade programs such as cosmetology are the most likely to be cut off from federal student loans, according to HEA.
The new rule reflects Republican efforts to bar federal student loans for degrees that "leave students worse off than if they never went to college," according to a 2025 statement from the U.S. Senate Committee on Health, Education, Labor and Pensions.
The value of a college education has increasingly come into question in recent years, especially as tuition costs have soared, leaving millions of Americans saddled with $1.8 trillion in student loans.
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