What's Happening?
The Department of Education under the Trump administration has proposed a new accountability measure for postsecondary programs, known as the Do No Harm test. This proposal aims to streamline existing accountability measures by introducing an earnings
test that applies uniformly across all postsecondary programs, regardless of certification level or institution type. The new policy requires undergraduate programs to demonstrate that their graduates earn more than a working adult with a high school degree. Programs that fail to meet these standards for multiple years could lose access to all federal loans. The proposal is part of the One Big Beautiful Bill Act passed by Congress, which exempts certificate programs from this earnings test. The department's proposal also seeks to align this new measure with the existing gainful employment rule, which assesses students' earnings and their ability to repay student loans. Negotiations on the proposal began on Monday and are expected to continue through the week, with a public comment period to follow before the rule is finalized.
Why It's Important?
The proposed changes by the Department of Education could significantly impact the landscape of higher education funding in the U.S. By introducing a uniform earnings test, the department aims to hold all postsecondary programs to the same standard, potentially affecting the financial viability of many programs, especially those at for-profit institutions. This move could lead to a reduction in federal aid for programs that do not meet the new standards, affecting approximately 650,000 students who currently receive federal aid. The proposal has sparked debate among stakeholders, with some praising the uniformity of the new measure, while others express concern over its potential to inadequately protect students, particularly those in certificate programs. The outcome of these negotiations could influence the future of federal aid distribution and accountability in higher education, impacting students, educational institutions, and taxpayers.
What's Next?
Following the negotiations, the Department of Education will publish the proposed rule for a 30-day public comment period. During this time, stakeholders, including educational institutions, advocacy groups, and the public, will have the opportunity to provide feedback. The department will then address these comments before finalizing the rule. The new earnings test is set to take effect on July 1. As the proposal progresses, it is likely to face scrutiny and potential legal challenges, particularly concerning the exclusion of certificate programs from the earnings test and the elimination of the debt-to-earnings metric in the gainful employment rule. The department's ability to implement these changes will depend on its capacity to navigate these challenges and align the new measures with existing legal frameworks.
