Department of Education rejects student loan major ban reports

Graduates in lower-paying fields face potential restrictions on federal student loans under a Department of Education framework finalized in July, though federal officials reject claims that specific majors are being banned outright. The policy change comes as the $1.7 trillion federal student loan portfolio faces rising rates of default and delinquency.

Department Rejects Curriculum Ban Reports

The Department of Education dismissed reports that the administration is seeking to ban students from majoring in specific college degrees. In a post on X responding to a report by The New Republic, the department stated that federal authorities do not set curriculums or programs. Instead, the administration aims to hold institutions accountable for leaving students worse off than if they had never enrolled, according to the department’s statements.

First off, we’re not ‘banning’ any program, the Department of Education wrote on X, adding that federal student loans should not function as a welfare program for failing college programs. Under Secretary of Education Nicholas Kent stated in a press release provided to Newsweek that the administration is implementing reforms to drive down education costs and safeguard taxpayer dollars.

Comparing Earnings Outcomes Across Sectors

The regulatory framework assesses undergraduate programs by comparing median earnings of graduates four years after completion with working adults of a similar age holding only a high school diploma. Graduate programs face evaluation against the earnings of workers holding bachelor’s degrees. According to a Los Angeles Times report, an estimated 3 percent of bachelor’s and advanced degree programs at public and nonprofit institutions fail the test, compared with roughly one-third of programs at for-profit colleges.

Overall, an estimated 5.2 percent of programs could fail this accountability metric, impacting programs attended by 4.2 percent of federal loan or grant recipients. The New Republic indicated that fields such as social work, art, religious studies, music, teaching assistance, and cosmetology could experience the heaviest effects due to generally lower salaries.

Financial Returns by Discipline

A study published in May by the Postsecondary Commission and Mathematica compared earnings for nearly one million students who entered public colleges in Texas against individuals who did not attend college. Liberal arts bachelor’s degree fields produced the lowest measured 15-year net earnings gain at approximately $35,400. Parks, recreation, leisure, and fitness studies followed at about $42,400, while social sciences generated roughly $51,300 and communications reached about $70,400. Every broad bachelor’s degree field examined produced a positive average return.

STEM pathways delivered higher financial gains in the data. Students selecting engineering and architecture programs saw cumulative net value-added earnings exceeding $200,000 on average. While critics raise concerns that certain socially valuable professions offer lower salaries, federal officials maintain that transparency regarding employment outcomes remains necessary to protect borrowers from unmanageable debt burdens.