University of Tennessee Programs Pass Federal Earnings Test

Sixty undergraduate majors meet new workforce value rules, protecting future student access to federal loans.

Updated on Oct. 30, 2026 in Financial Aid

Bold vector editorial illustration of a classic stone collegiate archway, representing academic stability and future workforce value. — Sixty undergraduate programs at the University of Tennessee have cleared new federal earnings benchmarks, meeting workforce value standards for student loans. AI Illustration. Upload story photo >

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Sixty undergraduate programs at the University of Tennessee have cleared a new federal earnings benchmark. This development aligns with Department of Education rules designed to measure the workforce value of degree programs.

Why it matters

The Department of Education implemented this accountability rule to ensure degree programs prepare students for viable career paths. By comparing earnings to regional benchmarks, the federal government intends to hold institutions responsible for the long-term compensation of their graduates.

The Department of Education compares graduate earnings four years post-graduation to the local $32,989 median income for Tennessee adults aged 25-34 with a high school diploma. Programs that fail this test twice within three years will lose access to the federal Direct Loan Program.

The players

University of Tennessee

A large public university system in Tennessee whose undergraduate programs were evaluated for federal loan eligibility.

U.S. Department of Education

The federal agency responsible for overseeing student aid and enforcing workforce value standards for degree programs.

The HEA Group

An education research organization that analyzed over 32,000 undergraduate programs regarding federal loan outcomes.

The details

Federal officials evaluate workforce value by measuring average alumni earnings against the median income of local high school graduates. For example, Fine and Studio Arts graduates at the University of Tennessee earn an average of $34,609, placing them above the state benchmark. Institutions with programs that fall short can choose to appeal the classification or remove those specific offerings from federal loan participation for five years.

January 2026: The HEA Group released the program analysis dataset.
Summer 2026: Department of Education issued the final accountability rule.
Early 2027: The first federal earnings test for loan eligibility occurs.
2027-28: Award year for which programs must comply with new rules.

Education Landscape

This earnings test represents a shift in federal oversight, marking the first time degree programs are tied to specific workforce income metrics. It follows a national trend of increased scrutiny regarding the return on investment for undergraduate credentials.

Students should review whether their chosen major meets federal earnings benchmarks to understand potential changes to their loan eligibility. If you are concerned about how these rules affect your degree, contact your school's financial-aid office to discuss your program's status.

The takeaway

The federal government is setting new, measurable standards for the financial value of undergraduate degrees. Prospective students should check if their prospective major meets these income benchmarks to ensure their program remains eligible for federal student loans.