The Trump administration is implementing new accountability standards for colleges and universities, requiring academic programs to demonstrate their graduates earn higher salaries than comparable workers without degrees or face the loss of federal student loan eligibility.
Under the new rule announced by the Department of Education, institutions receiving federal student aid will be evaluated over three consecutive years and must meet earnings benchmarks in at least two of those years to maintain access to federal loans for their programs.
The department characterized the measure as “long-overdue,” citing a student loan debt crisis that has swelled to nearly $2 trillion. One in five borrowers is currently in default, representing record-high levels despite the Biden administration’s pandemic-era payment pause that extended through fall 2024.
Rising Costs and Declining Confidence
The accountability push comes as college costs have reached unprecedented levels. According to the department, the average cost for a four-year degree in the United States now stands at $153,080, while private universities carry an even steeper price tag averaging $234,512.
Education Secretary Linda McMahon criticized higher education institutions for prioritizing enrollment numbers and tuition revenue over career preparation.
“We have constructed an educational theme park – flashy, fun, but not practical for those seeking opportunity and advancement,” McMahon said. “Schools are boosting revenue by marketing the fun to students, even if they don’t complete their degrees. For too long, badly calibrated financial incentives have driven universities to squeeze tuition revenue from taxpayers and young, impressionable individuals instead of preparing them for rewarding and remunerative careers.”
Shifting Attitudes Toward Higher Education
The new requirements reflect changing perceptions about the value of a college degree. More than half of Generation Z respondents in recent surveys say their college degree is a “waste of money,” with 41% of Millennials expressing similar frustration and 20% of Baby Boomers sharing that view.
College enrollment has declined from its 2016 peak, when roughly 70% of high school graduates enrolled in postsecondary education. That figure has since dropped to 62% in recent years.
The higher education sector has also seen increased financial stress, with approximately 60 colleges shutting down annually out of about 4,000 degree-granting institutions nationwide.
In response to these trends, many employers have begun eliminating college degree requirements for positions that previously required them, further calling into question the necessity of a four-year credential for certain career paths.
Implementation and Oversight
The Department of Education said the new accountability measure was developed through a negotiated rulemaking process earlier this year. The rule is designed to protect both students from accumulating debt for programs with poor employment outcomes and taxpayers who ultimately bear the cost of defaulted federal loans.
The earnings comparison will measure whether graduates of specific programs earn more than workers with similar demographic characteristics who did not complete a degree in that field. Programs that consistently fail to meet this threshold over the three-year evaluation period will lose eligibility to participate in federal student loan programs.
The policy represents one of the most significant attempts by the federal government to tie higher education funding to measurable career outcomes, potentially reshaping how colleges structure and market their academic programs.
Source: www.dailywire.com — https://www.dailywire.com/news/trump-wants-colleges-to-prove-a-degree-is-worth-it