WLEN: Education Department ties college loan access to graduate earnings

The Department of Education has finalized a rule tying colleges’ access to federal student loans to how much their graduates earn.

Under the rule, undergraduate programs must show graduates out-earn the typical high school graduate in their state, and graduate programs must beat the typical bachelor’s degree holder.

Programs failing two of three years lose Direct Loan eligibility. Education and Workforce Committee Chairman Tim Walberg calls it the most significant higher education accountability reform in a generation, saying it protects students and taxpayers.

Critics, including Democratic lawmakers and student advocates, argue the rule is weaker than the standard it replaces and will catch fewer low-performing programs.

The rule takes effect for 2027.