The new Department of Education rule threatens to cut federal student loans to underpaying college programs and degrees.
Ta’Ni Miller
News Editor
News
Under the Student Tuition and Transparency System (STATS) and Earning Accountability rule, undergraduate programs across the nation will now be required to demonstrate that graduates earn more than the average high school diploma holder. Graduate programs will be required to demonstrate that their graduates earn more than the average bachelor degree holder.
With Winthrop’s longstanding history of being recognized as a leading college for education and teaching degrees, many students are now in danger of these cuts.
Student Tuition and Transparency System and Earnings Accountability rule
Under Trump’s new law signed on July 4, 2025 and put into effect on July 1, 2026 after approval from the U.S. Department of Education, students pursuing careers in low-paying jobs may face financial trouble.
All programs at a higher education institution will be subject to the earnings accountability framework. This new law does not take into account an institution’s previous tax status or credential level. Additionally, the institution must have already participated in the Direct Loan program in the past five years.
The new act could be delayed for certain programs if the program prepares students for employment in occupations where the majority of workers receive tipped income. This is in adherence to President Trump’s “No Tax on Tips” policy, taken into effect at the start of the 2026 tax years. Qualified programs will have at least a one-year delay in the rule’s eligibility consequences.
In addition, programs are exempt from automatic loss of Title IV eligibility if the program is not yet determined to be a low-earning outcome program. The institution and the Department must agree “to amend the institution’s program participation agreement to prevent students from borrowing Direct Loans for the program for a period of at least five years.”
Title IV authorizes federal student aid programs.
The new STATS rule and Earning Accountability is part of a larger framework of President Trump’s Working Families Tax Cuts Act, also known as the “One Big Beautiful Bill Act” passed in 2025.
Programs who fail to meet the comparison threshold for earnings may include popular majors at Winthrop University that fall under the branch of arts and humanities, specifically educational degrees. These majors are predicted to have the highest failure rates under the new act.
Some of the most predicted majors include education, arts & humanities and social & mental health services.
South Carolina also has faced a teacher shortage due to low pay and burnout.
The minimum teaching salary in South Carolina is set by the state and based upon one’s educational level and years of experience. According to the National Education Association, starting pay for teachers ranged around $48,000.
The new loan change will pose challenges for students who rely on loan programs in order to afford the high cost of tuition, such as first-generation, low income, and racial minority students.
According to Winthrop’s 2025-2026 data set, the number of degree-seeking undergraduate students who were awarded federal aid and scholarships was a total number of 3341 students, out of 4,289 total enrolled students.
Marika Klinck, an english and art education who is studying at Winthrop for a semester, shared her thoughts on the importance of creative fields in today’s society.
“I think we focus too much in school on analytical and rational skills, and I think that art is very important to learn something about oneself and about the environment. I think it is important for students to develop [these skills] to get to know themselves, their preferences and who they are. It is important for the soul,” Klinck said.
The data set also highlights how 75% of undergraduate students in the 2025 class borrowed federal student loans at Winthrop University. This makes a staggering majority of students dependent on loan programs at Winthrop University.
13.31% of all students received a bachelor’s degree in Education.
History of Winthrop’s Education Degree
Winthrop was first founded in 1886 to “form a school whose mission would be the education of women as teachers” according to the Winthrop website. Named the “Winthrop Training School”, it opened its doors to a small class of twenty-one students in a borrowed, one-room building in Columbia, South Carolina.
Winthrop quickly gained state funding and moved to the permanent Rock Hill location in 1895. Today, the school boasts a wide variety of offerings to a coeducational class, achieving national recognition and prestige.
Educational degrees are primarily housed in the College of Education, Sport, and Human Sciences.
Teaching and educational undergraduate programs have grown substantially in size since its conception, now offering early childhood education, educational studies, middle level education, physical education and special education amongst others. Graduate programs such as Masters in Education, Arts in Teaching, Educational Specialist and Doctorates are also offered both in-person and online.
Students are specifically prepared for the SC school system by completing mandatory school placements, where they work alongside teachers in the workforce to gain real-life interactive skills with students.
Undergraduate education students must complete a total of 120 hours and upon graduation are qualified for teaching certification in South Carolina.
A large number of students may be negatively impacted by the bill and unable to pay for tuition, leading to a switch in career plans or possible enrollment from Winthrop.
To learn more about STATS and President Trump’s Working Families Tax Cuts Act, visit the official U.S. Department of Education website.
