Go ahead and get that poetry degree. Republican law won’t prevent people with humanities majors from getting student loans.
The vast majority of bachelor’s and graduate degree programs pass new rules meant to hold colleges accountable
A new Republican-backed law aimed at holding colleges accountable for the financial outcomes of their students has largely exempted most degree programs, including those in the humanities. The law, which focuses on making colleges more responsible for the debt their students take on, will primarily affect for-profit colleges and certificate programs that don't lead to traditional degree paths.
The exemption of most bachelor's and graduate degree programs, including those in the humanities, suggests that students pursuing degrees in fields like poetry will still have access to student loans. This development is significant because it indicates that the new regulations are more targeted at addressing issues specific to certain types of institutions and programs, rather than broadly restricting access to credit for students in certain fields.
To watch next: how these regulations impact enrollment and default rates at for-profit colleges and certificate programs, and whether the exemptions for traditional degree programs will lead to increased scrutiny of college outcomes and accountability measures in the future. Additionally, investors and policymakers should monitor how these changes affect the broader student loan market and the financial health of colleges and universities.
Originally reported by marketwatch.com. FundingWire adds analysis for finance & markets readers.