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Higher Education Accountability in the Budget Reconciliation Bill: How Senate Republicans' Proposal Would Affect Institutions and Students

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Title: Higher Education Accountability in the Budget Reconciliation Bill: How Senate Republicans' Proposal Would Affect Institutions and Students
Language: English
Authors: Jason Cohn, Urban Institute
Source: Urban Institute. 2025.
Availability: Urban Institute. 2100 M Street NW, Washington, DC 20037. Tel: 202-261-5687; Fax: 202-467-5775; Web site: http://www.urban.org
Peer Reviewed: N
Page Count: 11
Publication Date: 2025
Sponsoring Agency: Arnold Ventures
Document Type: Reports - Evaluative
Education Level: Higher Education
Postsecondary Education
Descriptors: Higher Education, Student Financial Aid, Federal Aid, Student Loan Programs, Outcomes of Education, Income, Financial Policy, Program Evaluation, Accountability, Educational Attainment, Undergraduate Students, Graduate Students, Minority Serving Institutions
Abstract: As part of the budget reconciliation process, Senate Republicans in the Committee on Health, Education, Labor, and Pensions have proposed to hold higher education programs accountable for students' earnings outcomes. The plan would cut off access to federal student loans for undergraduate degree programs where former students do not earn at least as much as the median working adult with a high school diploma in the same state and for graduate programs where former students do not earn at least as much as the median working adult with a bachelor's degree. In this brief, the author estimates how this policy, if enacted, would affect institutions and students. Key findings include: (1) Twelve percent of associate's degree borrowers and 1 percent of bachelor's degree borrowers are enrolled in programs likely to fail the high school earnings test and would therefore lose access to federal student loans; (2) Of the 20 largest associate's degree fields, programs in human development, health and medical administrative services, human services, and teacher education fields would see the highest failure rates; (3) Three percent of master's degree borrowers are enrolled in programs that would fail the earnings test. Just 1 percent of doctoral and professional degree borrowers are enrolled in programs likely to fail; and (4) Of the 20 largest master's degree fields, programs in mental and social health services--which often lead to high debt levels relative to earnings--are most likely to fail the earnings test.
Abstractor: ERIC
Entry Date: 2025
Accession Number: ED677442
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  Data: Higher Education Accountability in the Budget Reconciliation Bill: How Senate Republicans' Proposal Would Affect Institutions and Students
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  Data: Urban Institute. 2100 M Street NW, Washington, DC 20037. Tel: 202-261-5687; Fax: 202-467-5775; Web site: http://www.urban.org
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  Data: As part of the budget reconciliation process, Senate Republicans in the Committee on Health, Education, Labor, and Pensions have proposed to hold higher education programs accountable for students' earnings outcomes. The plan would cut off access to federal student loans for undergraduate degree programs where former students do not earn at least as much as the median working adult with a high school diploma in the same state and for graduate programs where former students do not earn at least as much as the median working adult with a bachelor's degree. In this brief, the author estimates how this policy, if enacted, would affect institutions and students. Key findings include: (1) Twelve percent of associate's degree borrowers and 1 percent of bachelor's degree borrowers are enrolled in programs likely to fail the high school earnings test and would therefore lose access to federal student loans; (2) Of the 20 largest associate's degree fields, programs in human development, health and medical administrative services, human services, and teacher education fields would see the highest failure rates; (3) Three percent of master's degree borrowers are enrolled in programs that would fail the earnings test. Just 1 percent of doctoral and professional degree borrowers are enrolled in programs likely to fail; and (4) Of the 20 largest master's degree fields, programs in mental and social health services--which often lead to high debt levels relative to earnings--are most likely to fail the earnings test.
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      – Text: English
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        PageCount: 11
    Subjects:
      – SubjectFull: Higher Education
        Type: general
      – SubjectFull: Student Financial Aid
        Type: general
      – SubjectFull: Federal Aid
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      – SubjectFull: Student Loan Programs
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      – SubjectFull: Outcomes of Education
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      – SubjectFull: Income
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      – SubjectFull: Financial Policy
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      – SubjectFull: Program Evaluation
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      – SubjectFull: Accountability
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      – SubjectFull: Educational Attainment
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      – SubjectFull: Undergraduate Students
        Type: general
      – SubjectFull: Graduate Students
        Type: general
      – SubjectFull: Minority Serving Institutions
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    Titles:
      – TitleFull: Higher Education Accountability in the Budget Reconciliation Bill: How Senate Republicans' Proposal Would Affect Institutions and Students
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