Starting in July 2026, thousands of students pursuing careers in education, cosmetology, and social work could lose access to federal financial aid under a controversial new Department of Education policy that labels certain degree programs as “bad investments.”
“I think that’s diabolical,” said Camerson McCollough Jr., a Houston Christian University senior who crowdfunded his final semester before law school.
McCollough graduated from high school with an associate’s degree in liberal arts and humanities, one of the fields critics say could be targeted under the new rules.
The “Do No Harm” accountability framework will cut federal funding, including Pell Grants and student loans, for college programs whose graduates don’t earn more than the average high school diploma holder. The policy, which emerged from the One Big Beautiful Bill Act, affects certificate programs, undergraduate degrees, and graduate programs nationwide.
Under Secretary of Education Nicholas Kent defended the policy in a statement, arguing that poor earnings, coupled with high costs, make college a bad investment for too many students, ultimately leaving taxpayers to shoulder the burden when some borrowers default. The Department claims the rule addresses $1.7 trillion in federal student loan spending after “15 years of regulatory uncertainty.”
But critics warn the policy could disproportionately harm Black students and the communities they serve.
“It’s creating a dichotomy that doesn’t exist,” McCollough explained. He pointed to Houston ISD’s new education system, where first-year teachers with bachelor’s degrees in criminal justice or psychology now make between $55,000 and $85,000. “It’s not the specific degree dictating their income, it’s the fact of just receiving the education.”
Brandi Brown, Executive Director of HYPE Freedom School, Inc., works directly with Houston’s Black youth navigating these educational decisions. When asked about the policy’s impact on students pursuing community-serving careers like teaching and social work, she emphasized the importance of building resilience.
“Part of what HYPE does is really help our scholars understand that they can do and choose to be anything that they want to be,” Brown said. “It reminds me of how important it is for us to really guard and support and protect our young people.”
HYPE Freedom School takes a holistic approach, addressing not just academic preparation but social-emotional support for students experiencing trauma and anxiety. Brown explained that the organization serves as “that bridge for our families to say, hey, this is coming down the pipe. Do you have any questions? How can we support you?”
The policy raises particular concerns because Black students disproportionately rely on federal Pell Grants and loans to attend college. Many are first-generation students from families without generational wealth to pay tuition out of pocket.
McCollough’s story illustrates the financial pressures students already face. Despite graduating high school with college credits, he launched a GoFundMe campaign to raise $6,000 for his final semester. His father is currently between jobs, and as a student in a single-parent household, federal aid has been critical to his educational journey.
“I didn’t want to continue to go into debt,” McCollough said. “And even now, still being able to seek funds as I go into law school is something that I’m praying a lot about.”
Brown emphasized that education serves purposes beyond immediate earnings. “We look at the whole child and how we approach the whole child through culturally affirming literacy,” she said. “We want all of our young people to have high-earning degrees. “But I also know that in order for them to have high-earning degrees, there are some skills that they need along the way.”
Students passionate about teaching in underserved schools, working as social workers in Black neighborhoods, or building careers in the beauty industry, McCollough warned, should not abandon education entirely.
McCullough said that college provides irreplaceable experiences.
“You’re going to meet people from different walks of life. You’ll be exposed to material and curriculum,” he said. “It changes your disposition toward life and allows you to begin elevating in a way that now enables you to be financially stable and financially successful. The connections that you make along the way last a lifetime.”
Since December, students submitting the FAFSA have received warnings about “lower earnings” for certain programs.
“Regardless of what degree you’re pursuing, if you have a desire to do it, it takes discipline to get your college degree,” McCullough said. “There should not be discrimination on the type of funding you get based on the content of your degree.”
