Did college boost your income? A federal test puts pressure on schools.

Federal student loan eligibility for colleges may now hinge on whether their graduates earn significantly more than peers without degrees, under proposed changes aimed at tying higher education funding to economic outcomes. The new rule would require institutions to demonstrate that their programs lead to higher earnings for students compared to alternatives, potentially reshaping financial aid distribution. Critics argue this could penalize schools serving low-income students or those in fields with lower starting salaries, while supporters say it would hold colleges accountable for preparing graduates for the workforce. The proposal has sparked debate over how to measure success in higher education beyond traditional metrics like enrollment and graduation rates.

Colleges could lose access to federal student loans if their graduates don’t make more money than someone without the degree.