Madison, WI – Students entering early childhood education programs could soon face reduced access to federal financial aid as sweeping changes to federal student loan and grant rules roll out in 2026. ECE programs—often delivered at community colleges and private career schools—face heightened risk under the new performance and earnings-based requirements.
According to federal guidance, ECE programs that are unaccredited, non-credit, or fall below the 150 clock-hour minimum cannot receive federal aid. Programs between 150 and 600 hours must now meet Workforce Pell standards, including a 70% completion rate, 70% job placement rate, and tuition costs that do not exceed graduates’ value-added earnings from previous cohorts.
Beginning July 1, 2026, ECE programs are subject to the “low earnings outcomes” test. The U.S. Department of Education will compare graduates’ median earnings four years after program completion to local workers with only a high school diploma. If graduates earn the same or less for two out of three years, the program loses access to federal Direct Loans.
Because childcare workers historically earn among the lowest wages in education, experts warn many ECE certificate programs may be at high risk, limiting affordable training options during an ongoing national childcare workforce shortage.
