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BumRushDaShow

(174,189 posts)
Thu Jul 9, 2026, 09:54 AM 6 hrs ago

Under a new federal rule, colleges must leave grads better off or lose financial aid

Source: NPR

Updated July 9, 2026 5:00 AM ET


This month, the U.S. Department of Education began rolling out a new accountability test that most colleges and universities will soon have to pass. The test itself is simple: If an undergraduate program's graduates don't earn more than workers who never went to college, that program could be cut off from federal student loans. The same goes for any graduate program whose graduates earn less than someone with only a bachelor's degree.

"If a program cannot show that it leaves its graduates financially better off than if they had never enrolled, it should not be underwritten by federal taxpayers," said Under Secretary of Education Nicholas Kent in a recent statement.

But this new test, known as "do no harm," raises some thorny questions about the purpose of college. Like: Is it just about making more money? Some advocates for postsecondary arts education think not. "Earnings is only a small piece of that puzzle," said Lee Ann Scotto Adams, executive director of the Strategic National Arts Alumni Project (SNAAP), a nonprofit that studies the careers of arts graduates.

She and Doug Dempster, the president of SNAAP, worry the new test might lead colleges and universities to preemptively slash low-earning creative arts programs in music, theater, studio art and design. Dempster says that could lead to a further devaluing of jobs that are critical to a well-functioning society.


Read more: https://www.npr.org/2026/06/30/nx-s1-5835631/turner-camhi-do-no-harm-college-loans

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DBoon

(25,311 posts)
2. Is that immediately upon graduation or is that over the graduate's lifetime
Thu Jul 9, 2026, 10:16 AM
6 hrs ago

Humanities graduates don't show improved earnings immediately, but the value of the degree pays off in lifetime earnings.

Or maybe the point is to kill off humanities and social science programs entirely.

Lonestarblue

(13,684 posts)
3. Exactly.
Thu Jul 9, 2026, 10:51 AM
5 hrs ago

The focus is on STEM only. On the one hand, they push STEM while the other hand takes away money for science and medical research by universities and the NIH that provide jobs. Everything this administration does makes zero sense.

Raftergirl

(2,008 posts)
4. My kid majored in Politics, minored in History. Got a job immediately with a Fortune 200 company
Thu Jul 9, 2026, 11:07 AM
5 hrs ago

that everyone on the planet knows well. He was accepted into their management training program and his first position was in sales analytics. The company (and most companies) didn’t care wtf you studied in college, only that you are smart, have critical thinking skills and excellent communications skills.

He is now, 11 years later, and 2 companies later, Manager of Sales operations for one of the biggest cybersecurity software tech firms. At 32 he is already in the top 10%.

Not a single “stem” class except the usual ones to fulfill basic requirements. Not a single business class either as his college (very small liberal arts college) offered zero of those.

My friend’s D got a great job at Google right out of college. She was an art history major at Williams. Don’t know where she is now, but I’m sure she is doing better than just fine.

Wall Street, for years, has hired Philosophy majors and I read AI companies are now hiring a lot of them, too.

moreland01

(899 posts)
5. Unfortunately, this makes sense.
Thu Jul 9, 2026, 11:13 AM
5 hrs ago

Universities are too expensive now. Students never before had to consider whether their degree would gain them access to a career that would pay them enough to comfortably pay off their student loans. That is a huge problem.

Perhaps there should be caps on loan amounts for degrees associated with low-wage professions.

Should a social worker be allowed to saddle themselves with $250k worth of taxpayer-funded government-backed loans? Stressful!!!

Personally, I think people who are doing the world a favor by taking up these professions should have free college, but I'm not the king.

Raftergirl

(2,008 posts)
6. There is a borrowing cap on how much one can take out in Federal loans Used to be around $5k
Thu Jul 9, 2026, 11:44 AM
4 hrs ago

a year for undergrad. . It’s gone up a bit in the last ten years, but not by much. It’s way less money than most can borrow to pay for a car.

Of course, parents can take out Parent Plus loans. Or a student can take out private loans with an co-signer. But those have nothing to do with the Federal student loan program. Students can take out more for graduate school loans.

Most students, except the ones from very wealthy families, do not pay anywhere close to the list price of colleges. Even the very wealthy get merit aid at many colleges, except at the elite of the elite, which don’t give merit aid. They elite schools do, however, all have extremely generous institutional grants, offered to students with parents whose income can be $200k/year. But you have to be able to get in, which is the hard part.

In NYS tuition at SUNY is free for those with incomes under $150/yr (I think that is what it is now)and there are so many campuses, most students live near one the can commute to, saving thousands in room and board costs.

You just have to promise to work in NYS for at least 5 years after graduating.

mike_c

(37,218 posts)
7. there are several reasons this is absurd...
Thu Jul 9, 2026, 02:31 PM
1 hr ago

...but two big ones are that universities have no control over whether or not students learn, or whether employers choose to hire them one way or the other. Anyone who has ever taught university classes knows than learning is a student choice-- we can't unzip students' heads and pour knowledge into them. Students have to choose to do the actual hard work of learning a lot about many things in a short time. It's a challenge they have to respond to. All the university can do is provide them with opportunities to learn. What students do with those opportunities is entirely up to them.

Employers, on the other hand, are under significant pressure that's completely independent from considerations of academic success (or university prestige) to hire workers at the lowest possible salary. They will happily underpay any workers they can, and in today's college graduate job market the graduates are usually at a disadvantage that's driven by market forces, not applicants' academic qualifications. Our capitalist system provides strong incentives to decouple earnings from academic achievement to the greatest possible extent.

I think this is all just part of our current American anti-intellectualism, especially strong on the political right. Shit on universities because, you know, educated "elites."

walkingman

(11,387 posts)
8. The student loan program should be reformed but not like this....education is not just about
Thu Jul 9, 2026, 03:22 PM
1 hr ago

the almighty dollar. One thing that would really help is to make them all zero-interest. Also the Pell Grant program should have reforms.

Also, they should scrutinize the institutions and business that qualify - example would be stuff like Trump University that was never about education.

phxjurist

(82 posts)
9. #1 Weed out the students who are there only to have a good time. Also, if you go by this theory, universities
Thu Jul 9, 2026, 03:40 PM
44 min ago

will be forced to close all teaching programs. No more BS degrees in education.

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