The U.S. Department of Education proposed a new regulation that would strip federal loan eligibility from undergraduate programs whose graduate earnings do not exceed those of the typical high school graduate, with parallel rules for graduate programs in relevant fields. The department says the rule—authorized under the One Big Beautiful Bill—would “end years of regulatory whiplash” and target programs that do not deliver higher outcomes. Under the framework described by the department, failing programs would trigger warnings in year one, potential loss of direct loan eligibility after a second failure, and possible Title IV elimination after subsequent evaluation. The proposal is open for a 30-day public comment period and could take effect as early as July, depending on the final rule timeline. If adopted, institutions will likely need to tighten outcomes reporting, improve post-graduation employment tracking, and reassess program viability under earnings metrics. The development is likely to intensify institutional scrutiny of career services effectiveness, employer partnerships, and how schools document learning-to-earnings pathways.