In a recent Chronicle of Higher Education article, Thompson Coburn partner Aaron Lacey discussed the One Big Beautiful Bill Act’s new earnings test, which requires undergraduate programs to show that alumni earn more than high school graduates four years after completing their degrees. The requirement, however, could render programs at nearly 20 faith-based colleges ineligible for federal financial aid.
“This is Congress’s answer to questions about the price of a college degree,” said Aaron, “an effort to say we’re doing something.” What it’s not, he said, “is a measure of quality of the program of lifetime value of the degree.”
Graduates of rabbinical-studies programs often continue their studies while working for small stipends, said Aaron. “Those folks rarely make a lot of money four years after earning their degrees.”
The potential impact on religious-degree programs and faith-based institutions appears at odds with an administration that has pledged to support Christian and Jewish causes and organizations.
Aaron said the Education Department could fix the problem by including an exemption based on religious freedom in the final rule. While the administration has sought to eliminate consideration of disparate impact on some minority groups, he said, this issue is likely to get attention because of which institutions are affected.
“They might want to talk about it,” he said, “when hundreds of rabbis are knocking on the door.”
Read the full article here (registration required).
