Protecting Students from Worthless Degrees Act

The Protecting Students from Worthless Degrees Act restricts federal funding for college programs that fail to meet specific standards regarding licensure preparation and student earnings. To qualify for federal aid, programs designed to prepare students for licensed professions must ensure graduates can take required exams and obtain certification in the state where they live, while also providing necessary internships or clinical placements. Additionally, the bill introduces a debt-to-earnings test that bars funding for programs where the average student's annual loan payments exceed 8% of their median earnings or where payments exceed 20% of their discretionary income. Institutions offering distance learning courses must also be legally authorized in every state where their students reside, unless participating in a mutual agreement between states.