Federal Student Loan Funding Should Be Tied to Graduate Earnings to Protect Taxpayers and Students
Source: Breccan F. Thies. "Trump Admin To Stop Taxpayer Funding Of Worthless Degrees." April 17, 2026. thefederalist.com
The Gist
The government should stop giving student loans for college programs where graduates don't earn more than high school graduates. Too many students are going into debt for degrees that don't help them financially, and taxpayers shouldn't pay for programs that leave students worse off.
Conclusion
The federal government should stop funding college programs that don't provide graduates with earnings at least equal to high school graduates
Premises
- 23% of bachelor's programs and 43% of master's programs have negative return on investment
- Student loan debt has reached $1.7 trillion with fewer than 40% of borrowers in repayment and 25% in default
- Unlimited federal lending has caused graduate tuition to increase 340% and undergraduate net prices to rise 93% from 1990-2020
- Schools can raise tuition knowing taxpayers will fund it through student loans, creating a moral hazard
- Many students are left financially worse off than if they had never attended college
- Current system forces taxpayers to subsidize programs that don't benefit graduates economically
Assumptions
- Economic return on investment is the primary measure of educational value
- High school graduate earnings ($40,000) represent a reasonable minimum threshold for college program success
- Market mechanisms will improve educational quality better than current regulatory approaches
- Taxpayers should not subsidize programs that don't provide clear economic benefits