Federal Loan Limits for Low-Paying Degrees

The new Trump administration rule will bar federal student loans for college programs where graduates consistently earn low incomes, targeting fields like cosmetology, arts, and some mental health programs. The policy compares graduates’ median earnings four years after graduation to the median income of high school graduates, with about 4.2% of programs expected to fail, especially in for-profit institutions. Programs such as cosmetology and arts face high failure risks, while the rule aims to increase accountability by linking financial aid eligibility to economic outcomes of graduates.

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