Education Department Finalizes Earnings Rule, Leaving Many Religious Programs at Risk Despite 600 Exemptions
Updated
Updated · Inside Higher Ed · Jul 6
Education Department Finalizes Earnings Rule, Leaving Many Religious Programs at Risk Despite 600 Exemptions
3 articles · Updated · Inside Higher Ed · Jul 6
Summary
About 600 religious programs will be exempt from the harshest part of the new rule, but religious college leaders say many ministry and theology programs still face losing federal loan eligibility.
Under the accountability test, programs must show graduates earn more than adults with only a high school diploma; failures in two straight years can cut off Direct Loans, and in rare cases Pell Grants.
Education Department estimates just over 5% of all programs would fail, including 9% of undergraduate and 6% of graduate religious studies programs, though biblical higher education accreditors say the student impact could be far larger.
Faith-based groups split over the carve-out: some yeshivas that avoid federal loans said it preserves Pell access, while Christian colleges and seminaries that rely on Direct Loans called it a trade-off between mission and affordability.
Religious advocates are still pressing Congress and the department for broader exemptions or an appeals process, warning reduced loan access could shrink ministry enrollments and weaken clergy pipelines.