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Graduates Face Loan Cuts Over Earnings | San Diego News
Description
Starting this month, U.S. colleges face a new federal mandate: graduates must earn at least the median wage of high school diploma holders in their state or risk losing federal loan access. The rule covers everything from vocational certs to four-year degrees, hitting for-profit schools hardest—but even some arts programs at public universities are falling short. Schools have until 2028 to comply, or students could be cut off from loans. Educators are split—some support accountability, others say the benchmark ignores the long timelines and non-monetary rewards of creative careers. Cosmetology schools are pushing back, claiming self-employment and unreported tips skew earnings data, earning them an extra year to comply—pushing their deadline to 2029. This marks a major push for ROI accountability, backed by Congress and harder to dodge than past attempts.
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