Colleges with low-graduates’ earnings may lose student loan access

Under the GOP’s “big, beautiful bill,” college programs whose graduates earn less than high school diploma holders may lose access to federal student loans, potentially affecting 40,000 students. This “do no harm” provision, effective in July, targets about 2% of degree programs, particularly in arts and trade fields, requiring them to demonstrate higher earnings for graduates. Most programs, especially in STEM, are expected to pass the earnings test, while some, like BYU’s dietetics program, face significant risks. The change aims to protect taxpayers from losses associated with low-earning graduates, as nearly $3 billion in loans were issued to students in failing programs during the 2024-25 academic year.