Give Families the Data, Not the Decision: Why Cutting Student Loans Is the Wrong Answer

The Department of Education just finalized a rule that will cut off federal student loans for college programs whose graduates don't earn enough. On paper, this sounds like accountability. In practice, it's the government deciding which dreams are worth financing.

We think there's a better way. And we built it.

We Agree With the Problem

Let's be clear: the problem the STATS rule is trying to solve is real. Students have been borrowing tens of thousands of dollars for degrees that don't deliver strong financial outcomes. Some programs charge $40,000+ per year and produce graduates earning $35,000. That's a bad deal, and students deserve to know about it before they sign the enrollment papers.

The data is damning. According to the Department of Education's own numbers, roughly 804 undergraduate programs currently produce graduates who earn less than a typical high school diploma holder. That means students went into debt, spent four years of their lives, and ended up financially worse off than if they'd skipped college entirely.

Something needed to change. We just disagree with how it's changing.

The Problem With the Government's Solution

The STATS rule takes a top-down approach: if graduates don't earn enough, the program loses loan access. No loans means fewer students. Fewer students means the program shrinks or dies. Problem "solved."

But this approach has serious problems:

1. It Assumes Earnings Are the Only Measure of Value

A social worker earning $42,000 is providing enormous value to their community. A teacher making $40,000 is shaping the next generation. A counselor earning $38,000 is literally saving lives. These salaries don't reflect the value of the work — they reflect how our economy compensates it.

By tying loan access to earnings, the government is essentially saying: if the market doesn't pay you enough, your education wasn't worthwhile. That's a narrow and frankly dangerous definition of "value."

2. It Punishes Students, Not Institutions

When a program loses loan eligibility, who actually suffers? Not the university — they'll redirect resources to more profitable programs. The people who suffer are the students who wanted to pursue that field but can no longer access federal aid to do so.

A low-income student who dreams of being a social worker just lost their path to that career. A first-generation student passionate about teaching just got told the government won't help them get there. That doesn't feel like accountability. It feels like gatekeeping.

3. It Removes Choice Instead of Enabling It

In a free market, consumers make decisions based on information. Bad products lose customers not because the government bans them, but because informed buyers choose something better. The answer to bad college ROI isn't to eliminate options — it's to give families the information they need to choose wisely.

The Alternative: Radical Data Transparency

Here's what we think the government should do instead: publish the data and let families decide.

Imagine if every college program had to display, prominently and clearly:

• The median salary of graduates 1, 5, and 10 years after completion
• The average debt at graduation
• The percentage of graduates who earn more than a high school diploma holder
• The graduation rate for that specific program
• A simple ROI score comparing cost to outcomes

Not buried in a government database. Not hidden behind acronyms and PDF reports. Right there on the program's website and in every admissions packet. A clear, standardized label — like a nutrition facts panel for college programs.

If a family looks at that data and still chooses a low-earning program — because they value the work, because they have other income sources, because they've calculated the trade-offs — that's their right. That's a free market working correctly.

This Is Exactly What We Built Ask Kinsley to Do

We didn't wait for the government to get this right. Ask Kinsley already provides the comparison data families need to make informed decisions about college programs.

Using real Department of Education College Scorecard data, you can:

• Compare salary outcomes for any major across hundreds of schools
• See debt levels and salary-to-debt ratios
• Explore career paths that different majors lead to
• Filter by major category to find the programs with the strongest ROI
• Make decisions based on facts, not feelings

This is the model. Give people the data. Trust them to make good decisions. And if a student still chooses a low-paying field after seeing the numbers? Respect that choice. They went in with their eyes open.

The Free Market Case for Data Over Restriction

The conservative case for cutting loans to low-performing programs sounds compelling: taxpayers shouldn't subsidize bad outcomes. But the truly free-market position isn't about restricting choices — it's about enabling informed ones.

When you walk into a car dealership, you can look up the vehicle's safety rating, reliability score, fuel efficiency, and resale value. Nobody prevents you from buying a car with poor reliability. But the information is there, and most consumers use it.

College should work the same way. The government's role is to ensure the information exists and is accessible — not to decide which programs you're allowed to attend.

What Families Should Do Right Now

Regardless of where the policy debate lands, the takeaway for families is immediate:

1. Look up the salary data for every program you're considering. If a program's graduates earn less than $42,000, you need to factor that into your decision — whether or not the government forces you to. Start comparing here.
2. Calculate your debt-to-salary ratio. If you'll owe more than your first year's salary, you're in the danger zone.
3. Don't wait for the government to tell you a degree isn't worth it. The data is available now. Use it.
4. If you're passionate about a low-earning field, plan accordingly. Minimize debt. Attend an affordable school. Explore scholarships specifically for education, social work, and public service.

The government is making the decision for you starting in 2028. We think you should make it for yourself, starting today.