This part cuts off federal loans for courses whose graduates earn too little. The test compares them with young workers who did not go on. A program must fall short in 2 of 3 years. Schools may appeal and may win eligibility back.
The document says “shall not”Who acts: institutions of higher educationHow: statuteSec. 84001 in the PDF
What the document says
“an institution of higher education subject to this subsection shall not use funds under this part for student enrollment in an educational program offered by the institution that is described in paragraph (2).”
The section adds a new subsection (c) to section 454 of the Higher Education Act of 1965 (20 U.S.C. 1087d) barring an institution, notwithstanding section 481(b), from using loan funds under part D for enrollment in a program described in the next paragraph, and requires the institution to give assurances from July 1, 2026 that it will comply.
What the document actually says
“an institution of higher education subject to this subsection shall not use funds under this part for student enrollment in an educational program offered by the institution that is described in paragraph (2).”
That sentence, in plain words
The school may not use loan money for such a course. The next rule says which courses those are.
What this is about
The bar covers money under this part of the law. It bites on enrollment in the course. The school must promise to obey.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “means”Who acts: Secretary of EducationHow: statuteSec. 84001 in the PDF
What the document says
“An educational program at an institution is described in this paragraph if the program awards an undergraduate degree, graduate or professional degree, or graduate certificate, for which the median earnings (as determined by the Secretary) of the programmatic cohort of students”
The section describes a failing program as one awarding an undergraduate, graduate or professional degree or a graduate certificate where the median earnings of the cohort of aided students who finished four years earlier, are not enrolled anywhere and are working fall below the median earnings of a comparison working adult for at least 2 of the 3 years before the determination.
What the document actually says
“An educational program at an institution is described in this paragraph if the program awards an undergraduate degree, graduate or professional degree, or graduate certificate, for which the median earnings (as determined by the Secretary) of the programmatic cohort of students”
That sentence, in plain words
The rule reaches courses that give a degree or graduate award. Their students' middle earnings are looked at.
What this is about
The cohort is those who finished four years back. They must be working and not in school. Falling short in 2 of 3 years is the trigger.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “means”Who acts: Secretary of EducationHow: statuteSec. 84001 in the PDF
What the document says
“is aged 25 to 34;”
The section sets the comparison as a working adult aged 25 to 34 who is not enrolled in an institution of higher education and who holds only a high school diploma or its equivalent, where the program awards a bachelor's degree or less, or only a bachelor's degree, where the program is graduate or professional. The figures come from Bureau of the Census data for the State, or for the whole country where fewer than half the institution's students live in that State, with graduate programs measured against the lowest of the State, State field of study and national field of study figures.
What the document actually says
“is aged 25 to 34;”
That sentence, in plain words
The comparison group is aged 25 to 34.
What this is about
They must not be in school. For most courses they hold only a high school award. For graduate courses they hold only a bachelor's degree.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Secretary of EducationHow: statuteSec. 84001 in the PDF
What the document says
“first, aggregate additional years of programmatic data in order to achieve a cohort of at least 30 individuals; and”
The section requires the Secretary, where a program's cohort is fewer than 30 people, first to add more years of that program's data to reach 30, and then, if still short, to add cohort years from programs of the same length.
What the document actually says
“first, aggregate additional years of programmatic data in order to achieve a cohort of at least 30 individuals; and”
That sentence, in plain words
The Secretary must add more years of data. The aim is a group of at least 30.
What this is about
That is the first step. If it is still too small, courses of the same length are added. Only then is the test run.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall not”Who acts: Secretary of EducationHow: statuteSec. 84001 in the PDF
What the document says
“An educational program shall not lose eligibility under this subsection unless the institution has had the opportunity to appeal the programmatic median earnings of students working and not enrolled determination under paragraph (2), through a process established by the Secretary.”
The section bars a program from losing eligibility unless the institution has had a chance to appeal the earnings determination through a process the Secretary sets, and lets the Secretary allow the program to keep taking part while the appeal runs.
What the document actually says
“An educational program shall not lose eligibility under this subsection unless the institution has had the opportunity to appeal the programmatic median earnings of students working and not enrolled determination under paragraph (2), through a process established by the Secretary.”
That sentence, in plain words
A course may not lose its standing without an appeal. The school must get the chance first. The Secretary sets up the process.
What this is about
The appeal is about the earnings figure. The course may keep running meanwhile. That is the Secretary's call.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: institutions of higher educationHow: statuteSec. 84001 in the PDF
What the document says
“the institution shall promptly inform each student enrolled in the educational program of the eligible program's low cohort median earnings and that the educational program is at risk of losing its eligibility for funds under this part.”
The section requires an institution whose program has missed the earnings test for one year in the covered period but not yet two to tell each enrolled student promptly about the low cohort median earnings and the risk of losing eligibility. The covered period is the three years before a determination.
What the document actually says
“the institution shall promptly inform each student enrolled in the educational program of the eligible program's low cohort median earnings and that the educational program is at risk of losing its eligibility for funds under this part.”
That sentence, in plain words
The school must tell each student in the course. It must do so at once.
What this is about
The notice covers the low middle earnings. It says the course may lose its funding. That follows one bad year.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Secretary of EducationHow: statuteSec. 84001 in the PDF
What the document says
“The Secretary shall establish a process by which an institution of higher education that has an educational program that has lost eligibility under this subsection may, after a period of not less than 2 years of such program's ineligibility, apply to regain such eligibility”
The section requires the Secretary to set up a process by which an institution whose program has lost eligibility may apply to get it back after at least two years, subject to requirements the Secretary sets that further the purpose of the subsection.
What the document actually says
“The Secretary shall establish a process by which an institution of higher education that has an educational program that has lost eligibility under this subsection may, after a period of not less than 2 years of such program's ineligibility, apply to regain such eligibility”
That sentence, in plain words
The Secretary must set up a way back. A school may then apply for its course. That comes after at least two years out.
What this is about
The course must have been shut out that long. The Secretary sets the terms. They must serve the aim of the rule.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the section does: bar loan funds for low-earning programs, define such a program, set the comparison group and data source, handle cohorts under 30, give an appeal, require notice to students after one bad year, and let a program regain eligibility after two years.
The assurance and redesignation edits to subsections (a) and (b) that carry the new subsection into the section.
The section works by amending section 454 of the Higher Education Act of 1965 and points to section 481(b) of that Act and to the Community Services Block Grant Act, neither of which is indexed here.
