The administration of U.S. President Donald Trump is moving to restrict federal student loans for academic programs that demonstrate low earning potential, including social work.
Initially introduced in April 2026 and finalized in June of that year, the updated policy is set to take full effect in 2027. The Department of Education will evaluate programs against its new “earnings test” throughout 2027 and 2028, with official loan denials beginning in time for the 2028-29 academic year.
By September 2026, widespread speculation circulated online suggesting that the Trump administration intended to pull federal student financial aid from college majors associated with lower post-graduation salaries, such as English literature and social work.
Public attention grew following investigative reports published earlier that summer by outlets like the Los Angeles Times and The New Republic.
These reports quickly gained traction across platforms like Facebook and X. Viral posts highlighted a targeted list of fields deemed financially underperforming:
Programs failing:
– Cosmetology
– Massage therapy / bodywork
– Culinary arts
– Medical / dental assisting
– Religious Studies
– Social work / mental health counseling
– Fine and studio arts
– Music
– Graphic design
– English literature
– Early childhood education
Inquiries from readers seeking verification have confirmed that these reports are accurate.
Understanding the ‘Earnings Accountability’ Framework
In April, the Department of Education introduced a proposed regulation linking federal student loan approval directly to the financial outcomes of specific fields of study.
On June 29, the agency released an official fact sheet outlining the finalized guidelines. According to the document, the Department will initiate data evaluations under a new “earnings test” starting in 2027. Programs that fail the benchmark twice consecutively will lose federal loan eligibility starting in the 2028-29 school year.
The administration stated that the policy aims to hold all educational institutions accountable for ensuring that graduates receive a viable financial return on their educational investment.
Officially titled the “Student Tuition and Transparency System (STATS) and Earnings Accountability” rule, the policy establishes a uniform metric to evaluate programs across all educational sectors.
A Department of Education spokesperson explained the process:
The Department, in collaboration with the IRS, will analyze earnings data for graduating cohorts beginning in 2027. Should a program fail to demonstrate a modest financial payoff for its alumni in two out of three consecutive evaluation cycles, it will be disqualified from the federal Direct Loan program.
Will Students Face Direct Bans from Borrowing?
While commentary on social media—such as a post by The New Republic—characterized the initiative as an outright ban on students majoring in certain subjects, the Department of Education clarified its stance.
While denying that entire degree paths are technically “banned,” the agency affirmed that access to federal loans will be discontinued for programs producing insufficient graduate earnings, asserting that federal loans should not subsidize underperforming academic tracks.
The regulatory text outlines the precise mechanism for losing eligibility:
Loss of Federal Direct Loan Program Eligibility
The final rule dictates that any program failing the established earnings benchmark for two out of three consecutive years will forfeit its participation in the Direct Loan program, officially designating them as “low-earning outcome programs.”
Consequently, once evaluation data is processed in 2027 and 2028, failing programs will no longer qualify for federal loan funding for prospective enrollees.
Federal Register documentation published on April 20, 2026, highlighted the categories most vulnerable to these criteria:
Master’s programs in Mental and Social Health & Allied Professions, associate’s programs in Teacher Education and Professional Development, and bachelor’s programs in Drama/Theater Arts are projected to experience the highest impact. Because these fields are frequently housed within public and non-profit institutions—which were previously exempt from similar accountability standards—they face a significantly higher probability of failing the new metrics.
The finalized regulations expand this vulnerability to various liberal arts, humanities, education, healthcare tracks, and personal service programs, though specific professional outcomes will depend on the overarching data categories used by the agency.
The framework defines “earnings” using comprehensive data reported to the Internal Revenue Service, encompassing wages, salaries, and self-employment income.