Student loan debt in the United States is nearing $1.7 trillion. The Biden administration tried to enact plans to forgive much of that student loan debt, but the Trump administration is taking a different approach, one that is more likely to ensure that it doesn't continue to balloon.
The Department of Education, taking its cue from the Working Families Tax Cuts Act, is restricting loans for university programs in which graduates of those programs do not earn as much as high school graduates. The DOE writes "if the typical graduate of an undergraduate program does not earn as much as a high school graduate, the program will no longer be eligible for federal student loans.
Graduate programs must similarly lead to earnings above those of an average bachelor’s degree holder. Programs that routinely fail to provide students with a reliable return on investment would lose access to federal student loans, and in certain cases, Pell Grants."
