Rule may cut loan access for half of arts graduate programs

A proposed federal rule that would tie graduate program eligibility for federal student loans to alumni earnings could jeopardize nearly half of all master's degree programs in the visual and performing arts, according to government calculations. The guidelines, being finalized by the U.S. Department of Education, would apply to all university programs.

Under the proposal, a graduate program would lose its ability to enroll students using federal loans if its alumni fail to meet a specific earnings threshold in two out of three consecutive years. For master's degree programs, the agency would calculate the median earnings of alumni four years after graduation. To pass, those earnings must exceed the median salary of working adults aged 25 to 34 who hold only a bachelor's degree. This marks a significant change from previous accountability tests, which measured alumni earnings against the wages of high school graduates.

Officials have described the rule as an effort to hold colleges accountable and protect students from debt they cannot repay. A department economist noted the law is responding to a real problem in higher education where prices are often set in a way that is not...