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Education Department disputes report that student loans will be cut for low-earning degrees

A New Republic report said the Trump administration is banning loans for lower-paying majors. The Education Department says the rule only holds individual programs accountable for poor earnings outcomes.

2 outlets · 0L · 1C · 1R First reported Account updated
Image: Newsweek
Image: Washington Examiner

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The story, neutrally told

The Department of Education rejected a report that the Trump administration is seeking to bar students in certain degrees from federal loans, calling it "fake news" on X. The department said it is not banning any program and that the rule holds colleges accountable for leaving students worse off than if they had never enrolled. The New Republic had said students in lower-paying fields could lose access to loans, naming social work, art, religious studies, music, teaching assistance and cosmetology as likely to be most affected.

As described by Newsweek citing the Los Angeles Times, the rule, finalized in July, compares undergraduate graduates' median earnings four years after completion with those of working adults who hold only a high school diploma; graduate programs are compared with bachelor's degree holders. The Los Angeles Times estimated about 5.2 percent of programs could fail, including roughly one-third of for-profit programs. Under Secretary Nicholas Kent said programs that cannot show graduates are better off should not be underwritten by taxpayers, citing rising defaults in a $1.7 trillion loan portfolio.

The Washington Examiner's opinion writer Brad Polumbo called the change minor, in the works since the One Big Beautiful Bill Act of July 2025, and said the New Republic post drew more than 20 million views and condemnation from Democratic officials. Citing AEI scholar Preston Cooper, he said fewer than 5% of undergraduate programs could lose eligibility and that the test applies program by program, not to whole majors.

Every sentence links to the reporting it rests on.

Left0 outlets

No left outlet in our sources has covered this story yet.

Centre1 outlet

Framing
Reports the department's rebuttal of the New Republic report, with figures from the Los Angeles Times and a Texas earnings study.
Emphasis
Department statements, estimated share of failing programs, earnings data by field.
Leaves out or plays down
Does not include the reaction from Democratic officials or social media.
Charged language
“fake news at its finest”
For example
“insisting that a new rule will instead “[hold] colleges accountable for leaving students worse off than if they never enrolled.”” — Newsweek

Right1 outlet

Framing
Opinion piece presents the backlash as a hysterical overreaction to a minor, sensible rule and attacks the New Republic's reporting.
Emphasis
Online reaction, AEI's Preston Cooper, the low bar of the test, program-level application.
Leaves out or plays down
Does not mention the estimated 5.2 percent overall or the graduate-program test, and gives little on critics' concerns about socially valuable low-paid professions.
Charged language
“meltdown”“wildly misleading”“hysterical discourse”“deranged journalists”
For example
“So, the whole hysterical discourse over this topic is nothing short of absurd.” — Washington Examiner