The U.S. Department of Education has proposed a new “earnings test” that would strip federal loan eligibility from undergraduate programs whose graduates’ higher earnings do not beat a benchmark tied to the typical high school graduate. A similar standard would apply to graduate programs, using earnings relative to undergraduate programs in the same field. The department described the framework as a way to “end years of regulatory whiplash” and target student debt tied to programs that fail to deliver. The proposal follows a five-day negotiated rulemaking process held in January that brought together federal, state, college, and accreditation stakeholders. Under the draft rule, programs can move through staged warnings and potential loss of Title IV eligibility across multiple test cycles. Officials said it could take effect as early as July, with a 30-day public comment period that could shape how the final version is calculated and applied. For colleges and accreditors, the next steps are operational: align program reporting, validate earnings data inputs, and stress-test program-level outcomes before any final rule is published.