Low-Earning Degrees Will Soon Lose Access to Federal Student Loans

A new federal law creates a “Do No Harm” earnings test: programs whose graduates earn less than comparable high school graduates will lose access to federal student loans starting in the 2028-29 academic year.

93% of cosmetology certificate programs are expected to fail. Mental health services master’s programs also face higher than average failure rates.

644,000 students are currently enrolled in programs expected to fail, receiving $2.7 billion in federal loans annually. Already-enrolled students are protected and can finish their degrees, but new enrollees will eventually lose loan access if their program fails two years running.

Hundreds of thousands of college students are enrolled in degree and certificate programs that, under new federal law, may soon be cut off from federal student loans. The One Big Beautiful Bill Act, requires colleges to prove their programs actually improve graduates’ earning power, and those that don’t risk losing access to federal student loan programs.

The framework, informally called “Do No Harm,” sets a new standard: if a program’s graduates earn less than comparable workers who never attended college at all, the program can no longer receive federal loan funding.

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