The U.S. Department of Education finalized its rule on June 29 that would determine the eligibility of college programs for federal student loans based on how much their graduates earn after completing their studies.
Under the new rule, undergraduate programs must demonstrate that their graduates earn more than high school graduates, while master’s and doctoral programs are required to prove that their graduates earn more than bachelor’s degree holders.
The department said in a statement that a college program will lose eligibility to participate in the federal direct loan program if it fails to show that its graduates earn at least the “modest financial return on investment” in two out of three consecutive award years….