Congress Passed College Earnings Disclosure Law
New legislation links federal student loan eligibility to graduate salary outcomes.
Updated on Oct. 5, 2026 in Financial Aid
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Should college programs be required to meet minimum earnings standards for students to receive federal loans?
As of June 1, 2026, federal legislation requires college programs to meet minimum earnings standards for student loan eligibility. Programs failing these benchmarks twice within three years will lose access to federal funding.
Why it matters
Lawmakers established these standards to ensure that degree programs provide a tangible salary advantage over high-school graduation. The policy holds institutions accountable for graduate earnings outcomes.
Approximately 2.9% of borrowers who took out federal loans in 2024 and 2025 were enrolled in programs that currently fail the new earnings standard. For-profit institutions account for 57.4% of enrollment in these failing programs.
The players
United States Congress
The legislative branch of the federal government that enacted these new financial aid accountability requirements.
The details
Under the new law, undergraduate programs must ensure graduates earn more than high-school graduates in their state four years post-graduation. Similarly, graduate degree recipients must out-earn bachelor's degree holders aged 25 to 34.
Timeline
2024 and 2025: Borrowers took out federal student loans.
June 1, 2026: Earnings requirement law went into effect.
Culture Shift
This policy marks a departure from historical norms by shifting the financial risk of low-earning degrees toward the institutions themselves. It aligns with a broader societal movement prioritizing measurable return on investment in higher education over traditional academic prestige.
Students should evaluate the potential earnings of their chosen degree programs against state-specific salary data to understand future loan eligibility. Prospective enrollees at for-profit colleges may face higher risks of attending programs that lose federal funding.
The takeaway
Prospective students should research program-specific earnings data to ensure their chosen path aligns with federal accountability standards. Investing in degrees with proven salary advantages helps mitigate the risk of future financial aid disruptions.
Further reading
Learn more about federal mandates and aid programs in our Financial Aid section.
Source note: This article includes information reported by Morningstar.
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Should college programs be required to meet minimum earnings standards for students to receive federal loans?
