President Donald Trump’s Department of Education is imposing a new accountability test on colleges, with programs that fail risking access to federal student loans. Institutions receiving federal student aid must prove their graduates earn more money than comparable workers, or students will lose access to federal loans for those programs. The programs will be evaluated over three consecutive years and must meet the earnings benchmark in at least two of those years.  The Department of Education called the new rule “long-overdue.” Total student loan debt has ballooned to nearly $2 trillion, and defaults are hitting record highs, with one in five borrowers in default. The alarming rate is despite efforts under the Biden administration, which paused federal student loan payments during the COVID pandemic through fall 2024. The average cost of college for a four-year degree in the United States is $153,080. Private Universities take that total even higher with an average price tag of $234,512.  Education Secretary Linda McMahon argued that too many colleges have prioritized enrollment and tuition over preparing students for successful careers. “We have constructed an educational theme park – flashy, fun, but not practical for those seeking opportunity and advancement,” she said. “Schools are boosting revenue by marketing the fun to students, even if they don’t complete their degrees. For too long, badly calibrated financial incentives have driven universities to squeeze tuition revenue from taxpayers and young, impressionable individuals instead of preparing them for rewarding and remunerative careers.”  College enrollment has also declined in recent years. The share of high school graduates enrolling in college peaked at roughly 70% in 2016 before falling to 62% in recent years. Higher education has also experienced a wave of closures, with roughly 60 colleges shutting down annually out of approximately 4,000 degree-granting institutions nationwide. More than half of Gen Z says their college degree is a “waste of money” with 41% of Millennials expressing the same frustration and 20% of Baby Boomers. Many employers are dropping college degree requirements for jobs.  The Department of Education said the new accountability measure was developed through a negotiated rulemaking process earlier this year and is intended to better protect both students and taxpayers.