In a rare show of bipartisan agreement, experts from different political backgrounds have praised a law designed to protect college students from incurring federal loan debts for programs with little financial return. This measure, signed by President Donald Trump, has been described as a significant advancement in holding colleges accountable, comparable to the introduction of the College Scorecard website that disclosed graduates’ earnings by institution. Advocates from both the progressive Century Foundation and the conservative American Enterprise Institute recognize the potential of this new accountability rule.
This rule is part of broader changes in higher education policy introduced by the One Big Beautiful Bill Act. These changes aim to enhance protections for students and families while reducing education costs. The reforms occur amidst a politically charged environment with other controversial education policies in place, such as restrictions related to diversity policies and penalties on elite universities. Despite these tensions, some experts see positive steps, like a new earnings indicator added to the FAFSA, which alerts applicants if programs result in low financial returns compared to just having a high school diploma.
Additional reforms include overhauling accreditation systems, capping borrowing for graduate students, and expanding Pell Grant eligibility to shorter-term job training. Many of these steps had been proposed by past administrations but faced resistance from educational institutions. Analysts argue that even contentious measures, like taxing university endowments, could lead institutions to expand their enrollments, thus distributing their educational offerings more widely.
Analysts have noted that the Trump administration’s support for these reforms may be ideologically motivated rather than for the educational improvements previously sought. Yet, longstanding issues with accreditation agencies that have failed to ensure quality standards are being addressed. These agencies continue to approve institutions with low graduation rates, allowing them to receive significant federal funding.
While some experts welcome the rule preventing federal student loans for low-return programs, they highlight a flaw in its calculation method, which focuses on graduates’ earnings rather than the cost of their degrees. This could still allow loans for programs with seemingly good wages that don’t cover the debt size.
The AHEAD rule, effective in July, will impact programs with low financial payoffs, primarily at for-profit colleges, and is influenced by similar efforts from previous administrations. The rule’s anticipated impact reflects ongoing public support for cutting federal funding to ineffective programs. Additionally, there is a push for more transparency in college costs, which remains difficult to achieve despite repeated congressional attempts.
Overall, the changes reflect a growing public demand for accountability and transparency in higher education, driven by skepticism about the value of degrees and trust issues with universities.
Source: The Hechinger Report
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