Colleges must show graduates benefit or lose federal financial aid

The U.S. Department of Education has issued a new federal rule requiring colleges to demonstrate that their graduates achieve positive financial outcomes, such as higher earnings relative to debt, or risk losing access to federal financial aid programs. This policy aims to hold institutions accountable for student success and protect taxpayers from funding programs that leave graduates worse off. It could reshape higher education by pressuring colleges to improve career outcomes and reduce costs.

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