Protecting Students from Worthless Degrees Act

The Protecting Students from Worthless Degrees Act restricts federal funding for colleges that offer programs preparing students for licensed professions unless those programs guarantee licensure eligibility in the student's specific state and provide required clinical or internship placements. To prevent low-earning degrees, the bill mandates that programs must maintain a debt-to-earnings ratio below 8 percent and a discretionary debt-to-earnings ratio below 20 percent, with institutions barred from enrolling students in non-compliant programs for up to three years. Additionally, the legislation requires colleges to clearly warn students if a program does not meet the educational prerequisites for practicing a profession in the state where the student lives. Finally, the act enforces stricter rules on distance learning by requiring schools to be legally authorized in every state where their online students reside, unless covered by a specific reciprocity agreement between states.