A new analysis from the Institute for Higher Education Policy (IHEP) reveals that while most programs preparing students for public service jobs like teaching pass the federal earnings test, they struggle when the cost is factored in. The federal test compares graduates’ earnings to those with only a high school diploma, with all bachelor’s-level education programs passing. However, only 65% pass Threshold 0, a value metric from the Postsecondary Value Commission, which assesses whether graduates earn more than the median earnings of high school graduates and can pay off the net cost of their program within 10 years.

The analysis, based on data from about 40,000 undergraduate programs, shows that 93% of programs pass the federal earnings test, established in 2025 by the One Big Beautiful Bill Act. Meanwhile, 82% pass Threshold 0. Maryanna Paradise, a research analyst at IHEP, emphasizes the need to address affordability issues and evaluate the overall value of a college credential, including access to benefits and graduate satisfaction.

IHEP recommends increasing the Pell Grant and state investments in higher education to make college more affordable. The organization also calls for the Education Department to reinstate and expand longitudinal studies that provide information about the non-earnings benefits of higher education. Paradise notes that the federal earnings test results highlight the need for ongoing improvement in program performance.

News is prepared from public university announcements for general guidance. Policies change frequently; confirm current details with each university admissions office.