Stay informed with the latest news of the day. Subscribe for FREE today!

Dept. of Education Threatens to Defund Schools with Degrees that Don’t Pay Off

Articles | August 26, 2026 | by Catholics for Catholics

The Department says the time of low-paying degrees is over.

By Catholics for Catholics

Saying that many college graduates don’t earn enough money after graduating or that some are being swindled into college degrees that leave them unemployed or in low-paying, dead-end jobs, the Department of Education is threatening to slash federal funding to those learning institutions.

According to a story by the Washington Times, the Department is planning to terminate federal aid to 42% of eligible colleges and universities for not meeting the necessary deadlines to document the worth of their degrees.

The Department has given a deadline to the 1,930 delinquent schools until Jan. 15 to share tuition and cost totals broken down by academic program for 2024 and 2025. The learning centers face fines, sanctions and a pause in grants and loans if they fail to do so.

“Colleges and universities are legally required to report the real prices of their programs and any financial aid or loans their students receive, yet nearly half of institutions nationwide haven’t submitted the required data,” said Ellen Keast, an Education Department spokeswoman.

“That failure leaves students in the dark about the debt burdens their programs create,” she added in an email.

The office that dispenses billions of dollars in student loans to 4,640 eligible campuses, Federal Student Aid, has foisted a separate Oct. 1 deadline for submitting 2026 numbers.

As part of a new policy, the Trump administration has requested the data to cease federal aid to programs whose alumni earn less than the average high school graduate.

Many of the recalcitrant schools the department flagged are for-profit institutions. Still, it also named some private nonprofits such as the University of Indianapolis, Kansas Wesleyan University and St. John’s College in New Mexico.

The list also includes public campuses such as the University of New Orleans, the University of Maryland Baltimore, Eastern Arizona College, and the East Bay and Dominguez Hills branches of California State University.

Save and Share This Catholic Patriotic Minute!

Servant of God Margaret Mary Healy-Murphy: Christ’s Servant in the American South

Support Our Mission

We're inspiring a new wave of Catholicism and love of country. We are restoring what it means to say “I’m Catholic” in the public square. We are changing the nation and shaping a more holy and moral future for America!

Support our mission to reclaim our country’s Christian roots and its guiding documents: The Bible and Constitution.
Donate Today