The four-year college degree no longer has the same pull it once did — and the Trump administration agrees.
The Department of Education concluded its negotiations on the Workforce Pell program on December 12, a new initiative included in President Donald Trump’s “big beautiful” spending legislation.
The program would extend Pell grants to low-income borrowers in short-term certification programs, with the intention of providing more funding for alternative paths to a four-year college degree or trade school.
Nicholas Kent, the department’s undersecretary, acknowledged during remarks at the beginning of negotiations that a standard four-year college degree is losing its value.
“Americans are questioning whether the value of higher education is worth the cost. Polling also shows that students do not believe they are graduating with the specific skills that they need,” Kent said. He added that skepticism about college degrees has led to students “showing more interest in pathways that get them into the labor force more quickly and without unnecessary debt.”
College still remains the primary path in the US for postsecondary education, and recent data from the New York Federal Reserve showed that it continues to lead to higher earnings. In addition, proponents argue the value of college extends beyond earnings to social opportunities and exposure to new ideas.
However, high student debt loads and a growing number of jobs eliminating degree requirements have sparked a growing interest in short-term credential programs and the trades, which the Trump administration is attempting to boost.
Chris Madaio, a senior advisor at the nonprofit The Institute for College Access and Success, told Business Insider that with more Pell grant support extended to short-term programs, it’s likely that more schools will offer them and more students will enroll.
“I think it’s all ensuring that students take what’s right for them,” Madaio said. “These programs should pay off for students, and they should give a good value and use students’ limited lifetime Pell grant eligibility for something that’s going to work for them and potentially allow them to get a job later down the road.”
Strengthening the college and non-college paths
The Department of Education’s Workforce Pell proposal will have a period of public comment before it is set to be implemented in July 2026.
If the rule is implemented as proposed, eligibility guidelines would vary by state. According to the department, each state will determine what qualifies as a high-skill, high-wage, or in-demand job based on what aligns with the industry needs in that state. For example, a state where agriculture dominates the economy might choose to prioritize short-term programs in that field.
Madaio said that this state variance is by design: “It’s really important that states are taking a close look at what they’re approving to ensure that there are jobs in that state and that these are valuable workforce training programs for jobs that are needed in that state.”
Accountability is key here, Madaio said, and states should ensure that schools are delivering on the value of the programs they offer. Otherwise, students could be left paying off loans they cannot afford — and that’s something that the gainful employment rule, which the department is set to negotiate in January, will address.
“These are really positive developments that show that there’s a broad agreement across the political spectrum that we owe it to students to make sure that the programs that they’re investing in are going to provide a quality education and that they’re going to get something out of it,” Carolyn Fast, director of higher education policy at the left-leaning think-tank The Century Foundation, told Business Insider.
Some high schools across the country are working to shift the emphasis away from a four-year college as the only option. Business Insider previously visited a public high school in rural Wyoming, for example, that works to equip students for college, career, or the workforce, giving students the freedom to choose the path that best suits their interests.
Overall, the higher education financing landscape is undergoing significant changes. In addition to the negotiations on Workforce Pell and gainful employment, the Department of Education recently concluded negotiations on a repayment overhaul that condenses the number of existing repayment plans, replacing them with less generous options that could lead to higher payments and shorter timelines to debt relief for student-loan borrowers.
As the slew of higher education changes takes effect, Madaio said that students should expect to see more advertising for short-term programs that are funded by grants. He recommended that students closely examine the actual costs of a program and its outcomes to avoid predatory behavior by schools.
“A critical piece is for students to do their homework when deciding on a certificate credential program, and then consider what kind of jobs they can get for that, and are those things that they need the training for?” Madaio said.
