Department of Education to Cut Direct Loans to Low-Performing College Programs

"The U.S. Department of Education finalized new regulations July 1 that expand federal accountability measures to nearly all college degree programs, which will go into effect in July 2027," The Daily Texan reports.

... "The new framework, called the Student Tuition and Transparency System and Earnings Accountability, evaluates undergraduate and graduate programs based on whether graduates earn more than the median income of workers ages 25-34 possessing the next-lowest level of education, according to the National Association of Student Financial Aid Administrators website. If a program’s graduate median earnings fall below this threshold two out of three consecutive years, the program loses eligibility to offer federal direct loans for two years, before reevaluation."

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Publication Date: 7/19/2026

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