The U.S. Department of Education proposed rules that would restrict federal student loan eligibility for college programs that fail new post-enrollment earnings benchmarks, with potential knock-on effects for Pell Grant access. The framework—mandated by the administration’s broader higher-education financing overhaul—uses IRS data to assess whether graduates are “better off” than their pre-college baseline. The proposal puts a wide range of offerings at risk, including some short-term certificates and fields where early-career earnings are often lower, such as cosmetology and parts of fine arts and music. At least 2,000 institutions would have at least one program flagged, according to tracking by American Enterprise Institute senior fellow Preston Cooper. Institutions now face compliance planning ahead of a potential July 1 finalization timeline, including reviewing whether existing student outcomes can withstand earnings-test scrutiny and how to communicate program value to current and prospective students. The changes are likely to intensify internal budgeting and academic-program review cycles, especially for colleges with portfolios concentrated in lower-earnings-adjacent disciplines.