Staff Reports
The Department of Education just finished a rule that will change how students use federal loans. The STATS and Earnings Accountability package — pushed by President Trump and Secretary McMahon — ties new Direct Loan eligibility to how much graduates actually earn. In plain English: if a college program leaves students worse off than a high‑school graduate (or worse than a bachelor’s degree for grad programs), that program can lose access to federal student loans. This is the new bite the administration put on the student‑loan problem.
What the rule actually does
The rule makes colleges report program‑level earnings and debt under a system called STATS. The Department will test whether a typical graduate earns more than relevant comparison groups. Programs that fail the “earnings premium” in two of three years can lose federal Direct Loan eligibility. The package also phases in new graduate loan caps and sharply limits Grad PLUS for new borrowers. There are some exemptions and phase‑ins to keep this orderly, but the first reporting starts later this year and real program flags show up when the Department runs its first calculations in 2027.
Why conservatives should applaud
This is conservative policy in action: stop throwing taxpayer money at bad incentives and force accountability. For decades taxpayers subsidized ever‑rising tuition and risky degrees, then got blamed when students couldn’t pay. This rule attacks the problem at the origin — before the loan is handed over. It won’t ban majors. It simply says: if you want me to subsidize your degree, show me a return. If not, pay your own way. Call it tough love for colleges and students who thought someone else would always write the check.
Practical effects and the fights ahead
Don’t expect instant perfection. Reports show many programs would be flagged under snapshot data and roughly 800,000 students may be enrolled in exposed programs right now. Colleges will grumble about data quality and implementation costs — and some lawsuits are already trying to block parts of the rule. Courts have issued temporary orders on some points, so the final shape will depend on litigation and, possibly, on Congress. Still, the phase‑in is meant to give schools time to fix or close bad programs without stranding students.
Bottom line: accountability, not censorship
This rule swaps soft slogans for real accountability. It won’t stop people from studying what they want, and it won’t wipe out existing balances. It will simply stop taxpayers from underwriting degrees that produce little economic value. Expect the usual outrage from campus elites and predictably sanctimonious media takes, then watch as colleges adapt or shrink the worst programs. If you want the student‑loan crisis fixed, this is the kind of no‑nonsense policy that actually works — whether the Left admits it or not.
