June 30, 2026

Trump Administration Finalizes Financial Aid Rule Targeting Low-Wage College Programs

The Trump administration has implemented new regulations aimed at determining eligibility for federal financial aid based on graduate earnings. These rules, finalized by the Education Department, mandate that college programs must prove their graduates receive better salaries compared to individuals with lesser education levels.

Starting this week, undergraduate programs need to demonstrate that their graduates earn more than high school diploma holders in their state to qualify for financial assistance. Similarly, graduate programs must verify that their alumni earn higher wages than bachelor’s degree holders in comparable fields.

The intent behind these measures is clear: to ensure that education programs financially benefit graduates more than remaining unenrolled. However, these changes could result in thousands of programs, particularly in low-wage fields, losing federal aid opportunities in the coming years.

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