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New and Little-Known Law Warns Struggling University Programs

New and Little-Known Law Warns Struggling University Programs

THE GREAT ACADEMIC PURGE

Within Trump’s “Big Beautiful Bill,” there’s a new provision referred to by federal officials as the “do no harm” test.

Officially called “STATS” – Short for Student Tuition and Transparency System – this test is a crucial part of the Earnings Accountability rule. It will ultimately mandate that universities compile data on student outcomes across specific majors. If those majors don’t show earned incomes exceeding the median earnings of individuals without a college degree, they risk losing federal financial support.

This seems reasonable, doesn’t it? I mean, why should taxpayers foot the bill for hefty college debts for programs that offer little chance of financial return?

However, groups like NPR are opposing this move:

“Earnings are just one aspect of a larger picture,” comments Lee Ann Scotto Adams, who heads the Strategic National Arts Alumni Project (SNAAP), a nonprofit analyzing arts graduates’ careers.

Both she and Doug Dempster, SNAAP’s president, are concerned that this new test could lead colleges to cut back on lower-earning creative programs in music, theater, and design. Dempster argues that such cuts could undervalue professions vital to a healthy society.

“Sure, we know we need nurses and journalists, and early childhood educators,” he said. “But it’s harder to quantify how many artists are necessary. I can assure you that if access is eliminated, our cultural life at a national level will suffer.”

I think it’s worth noting that not too long ago, universities and donors didn’t rely on federal assistance to fund art history classes. Federal aid for the arts really started to emerge only about 50 years back. Prior to that, educational institutions and even some wealthy alumni would help sustain the arts and humanities.

They also didn’t have the current 4:1 ratio of administrators to professors back in those days.

Back then, states would often cover tuition; the catch was that graduates usually had to teach in-state for a designated number of years.

And it was surprising to learn that federal financial aid actually traces its roots to the time of the Sputnik launch.

The “Sputnik scare” compelled federal leaders to enact the National Defense Education Act, or NDEA, which directly led to what we now recognize as FAFSA, the Free Application for Federal Student Aid. Eisenhower approved the NDEA on September 2, 1958.

This legislation was quite targeted, providing funding specifically for students pursuing degrees in STEM fields and K-12 teachers aiming to teach STEM subjects. Sorry to say, art majors, but your recent doodle isn’t going to help us win the Cold War.

Interestingly, I discovered a couple of other facts about the NDEA.

Recipients had to sign an affidavit and pledge allegiance, confirming they didn’t support any groups advocating for the overthrow of the U.S. Government through illegal means. The loyalty pledge mirrored that of many federal employees: “I do solemnly swear (or affirm) that I will uphold true faith and allegiance to the United States.”

Can you believe that?

(Consequently, prestigious institutions like Yale and Harvard, along with many elite liberal arts colleges, got into quite a tussle over the affidavit requirement. But that’s a different tale altogether.)

It’s unfortunate that this fund, created for national security, has paved the way for the challenging student loan landscape we experience today. As you might agree, that’s the tricky part with federal regulations; the consequences can often be unpredictable.

Nonetheless, it appears Trump is aiming to return to the essence of the original federal financial aid system. Since this is legislation rather than regulation, repealing it won’t be simple.

A future president could, perhaps, decide to disregard the law, especially if he or she leaned liberal. That’s certainly a possibility.

Yet, I’d guess universities will brace for tough times ahead.

By 2030, we may witness significant changes on college campuses.

MORE LINKS

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Cringe, but worth watching.

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