The administration of Donald Trump is taking a bold step to overhaul higher education, announcing a plan to cut off taxpayer funding for college programs that fail to deliver real financial results for students. And honestly, it’s about time someone asked the obvious question: why should Americans keep paying for degrees that don’t pay off?
Under new proposed rules from the U.S. Department of Education, federal student loan funding will no longer be available for programs that don’t lead to earnings above a basic threshold. For undergraduate degrees, graduates must earn at least as much as a typical high school graduate—around $40,000 annually. Graduate programs will face an even higher bar, needing to outperform the average bachelor’s degree holder.
According to Under Secretary of Education Nicholas Kent, the framework is built on “common sense”—a rare phrase in Washington these days. If a program leaves students worse off financially, taxpayers shouldn’t be forced to subsidize it. Simple, logical, and long overdue.
The move targets programs that rack up massive debt while offering little to no return on investment. Fields often mocked for their lack of job prospects—like certain niche academic programs—could now face the reality of funding themselves instead of relying on federal dollars. A tough pill to swallow, but maybe that’s what accountability looks like.
And the numbers backing this decision are hard to ignore. A 2024 survey from the Foundation for Research on Equal Opportunity found that 23% of bachelor’s programs and a staggering 43% of master’s programs have a negative return on investment. Meanwhile, student loan debt has ballooned to nearly $1.7 trillion—yes, trillion—with fewer than 40% of borrowers actively repaying and about 25% already in default.
Even more striking, the cost of attending college has skyrocketed. The average net price for undergraduate programs has risen 93% since 1990 (adjusted for inflation), while graduate tuition has surged by an eye-watering 340%. But don’t worry—universities somehow always find a way to keep charging more, knowing taxpayers are stuck picking up the tab.
The new policy would apply across all postsecondary institutions, from traditional universities to technical and career schools. Unlike previous administrations, which critics say selectively targeted certain institutions while giving others a pass, this approach aims to hold everyone to the same standard. Equal accountability—what a concept.
Importantly, the administration notes that valuable fields like liberal arts, philosophy, and history are expected to remain intact, ensuring that critical academic disciplines aren’t wiped out—just held to a standard of delivering value.
The Department of Education made it clear: programs that consistently fail to provide a strong return will lose access to federal loans and, in some cases, Pell Grants. Schools will either have to improve outcomes or fund those programs themselves.
At its core, this is about resetting a system that has left too many students buried in debt with little to show for it. By demanding real results and putting an end to what many see as a broken cycle, this move could mark a turning point in higher education.
And if it means students start getting degrees that actually lead somewhere—and taxpayers stop footing the bill for the rest—that’s a win worth celebrating.
