Earnings test for academic programs

Topic

An earnings test for academic programs is a regulatory accountability framework designed to evaluate the financial value of higher education programs by comparing graduates' post-enrollment earnings to a specific benchmark, such as the median earnings of high school graduates. Under proposed federal regulations in the United States, programs that fail to meet this minimum earnings threshold risk losing eligibility for federal student aid and loan participation. This measure aims to protect students and taxpayers by ensuring that postsecondary degrees provide a positive economic return on investment.