A rule the U.S. Department of Education will implement next July is steering conversations — and misinformation — about which degrees are considered valuable ahead of a supposed “ban” on student loans.
A Sunday post on X from left-leaning publication The New Republic fueled a response from the Education Department, shock, awe and commentary from people about the value of certain college degrees and employment outlooks.
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The story itself isn’t new. It was published on July 23. But the outrage, and the X post, is.
The degrees or certifications in question?
- Cosmetology.
- Culinary arts.
- Early childhood education.
- English literature.
- Fine and studio arts.
- Massage therapy.
- Medical and dental assisting.
- Music.
- Religious studies.
- Social work.
According to the rule, earning potentials are compared to a similarly-aged person who only has a high school diploma. A person with a high school diploma is expected to earn around $50,232 if they work year-round, the U.S. Bureau of Labor Statistics reported in August. Being below the baseline threatens loan eligibility.
“This makes sense to me: If a program’s grads don’t earn more than people without the degree, it can lose access to federal student loans,” wrote Sheel Mohnot, co-founder of a California venture capital company, on X. “IMO most degrees should be 3 years instead of 4. This rule should push colleges in that direction faster.”
Dr. Anthony Estreet, CEO of the National Association of Social Workers, said in a statement to Straight Arrow that the group is concerned with the Trump administration’s change to tie federal loan access to earning potential. The group added that social work is an undervalued profession with workers in pursuit of degrees to “help individuals, families and communities.”
“Instead of trying to limit social workers who represent the largest providers of behavioral health services in the U.S., this administration should be looking to increase social work pay through full reimbursement for the physician fee schedule, and access to programs like the Public Service Loan Forgiveness,” he said.
The rule is effective on July 1, 2027, according to the Federal Register.
Rule splits the public on what’s a worthy degree
The U.S. Department of Education on Monday defended the rule, saying that the administration is not banning students from taking out college loans. However, the department said it’s “holding colleges accountable” for not preparing students for post-graduation.
“Too many graduates report delaying major life milestones like buying a home or starting a family,” the department wrote. “Why? Because low return-on-investment programs saddled them with unmanageable debt that was never going to translate into a real-world job.”
It’s estimated that it would take 5,626 public, private and for-profit institutions 288 hours to review and comply with the changes, according to the Department of Education’s rule. For programs, it estimates that about 3,302 programs could fail under the earnings calculation, with about 40% estimated to close as a consequence of not getting federal loans.
The Federal Register filing said the rule protects students from getting pulled into high-cost programs with low earnings potential.
“Now Trump wants to pick your major in college if you need a student loan,” U.S. Rep. Mark Pocan, D-Wisc., wrote on X. “If your career doesn’t make enough money to please him, he apparently wants to end it before it even begins.”
The rule doesn’t mention a ban on students seeking a certain degree from taking out loans. But that hasn’t stopped conversation online from asserting as much.
The Education Department received 9,994 comments for the proposed rule change. A group of students, graduates, instructors and industry professionals supported the change to protect students from predatory programs.
“Commenters shared personal experiences of debt burdens, poor instruction, unsafe or inadequate equipment, and misleading job placement claims,” according to the Federal Register. Exact comments were not shared.
A separate group comprised of the same professionals opposed the change, fearing it would make college unattainable without federal student loans.
“A few commenters suggested that an institution should be able to appeal a low-earning outcome program determination based on evidence of a program’s civic and societal value,” according to the register, “to account for the benefit of lower-paying fields that serve the public good and whose societal benefits may not be reflected by earnings.”
Gainful employment rule modifies loan eligibility
A litmus test on how profitable certain college degrees are isn’t a new concept to the Education Department. It was introduced in former President Barack Obama’s first term to hold colleges accountable for profiting off degrees it knows students won’t attain living wages under.
The change applied to all higher education institutions and programs that accepted and disbursed federal student aid, and confirmed matriculation for federal student loans. The Education Department wrote the rule was in direct response to a growing number of college graduates saddled with student debt.
The rule stated that in 1990, one in every six full-time first-year students had a federal student loan. The rate grew to two out of every three college seniors in 2010.
The rule didn’t explicitly state which programs would become ineligible, but instead established a process colleges must follow when introducing new majors. Congress later stated that baccalaureate degrees in liberal arts aren’t considered gainful employment, but a grandfather clause has allowed colleges to continue offering the majors. Today’s Education Department implemented these modifications through the government spending bill Trump coined his “One Big Beautiful Bill.”
Data on the degrees’ worth is collected directly from institutions’ Title IV, Higher Education Act and personally identifiable information. The department then transmits the data “to at least one federal agency” to match earnings. The data matching won’t include a student’s personal information.
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