The U.S. Department of Education proposed a new rule that would strip federal student aid eligibility from undergraduate programs whose graduates’ earnings do not exceed the typical high school graduate, with graduate programs held to a similar benchmark versus comparable undergraduate programs. The proposal would create a “hard reset” of Title IV access tied to labor-market outcomes. The framework follows a five-day negotiated rulemaking process in January and is described as authorized by last year’s “One Big Beautiful Bill.” If finalized, the earnings test would trigger warning notices in the first year of failure and can escalate to loss of direct loan eligibility and a low-earning designation, with final loss of Title IV eligibility possible after additional follow-up testing. NASFAA said the earnings test could take effect as early as July, while the rule remains under a 30-day public comment period. The proposal represents a major shift toward program-level financial aid accountability, moving enforcement from general institutional compliance into earnings performance by credential.