Indiana Bill Threatens Degrees Earning Less Than High School – OpEd
Indiana lawmakers are moving forward with legislation that could dramatically reshape the state’s higher education landscape, potentially eliminating degree programs deemed to have insufficient economic returns. , the Indiana Senate passed Senate Bill 199, modeled after initiatives promoted by the Florida-based Foundation for Government Accountability, which aims to tie college program funding to graduate earnings.
The bill, as it currently stands, puts programs at risk of being eliminated if their graduates earn less than the average Indiana high school graduate – roughly $35,000 annually, according to recent data. This threshold is based on a federal earnings test established by Congress’s One Big Beautiful Bill Act last summer, but SB 199 goes further, potentially leading to the complete discontinuation of underperforming programs at public universities and Ivy Tech Community College, rather than simply restricting federal student loan access.
The move reflects a growing national trend of increased scrutiny over the value proposition of higher education, particularly as the cost of tuition continues to rise. Proponents argue that students should not be burdened with debt for degrees that don’t translate into viable career opportunities. Preston Cooper of the American Enterprise Institute, who has advised the federal Education Department on these earnings standards, stated that “Some forms of higher education out there simply don’t help students achieve economic mobility,” adding that students often “take on debt and end up making less than a typical high school graduate.”
However, the legislation has drawn criticism from those who argue that it represents an overreach of state control into academic affairs and a narrow definition of the value of a college education. Critics contend that focusing solely on immediate earnings potential overlooks the broader societal benefits of a well-rounded education, including critical thinking skills, civic engagement, and personal enrichment. Representative Tonya Pfaff, a Terre Haute Democrat, expressed concern during a committee hearing, stating, “I think we’re going down a dangerous path when we start eliminating degree programs because we don’t think they make enough money.”
While the federal earnings test will restrict federal student loan eligibility for students attending programs that fail to meet the standard, Indiana’s bill takes a more drastic step by potentially eliminating those programs altogether. The state Commission for Higher Education, a body of gubernatorial appointees, would have the authority to grant exemptions, but the potential impact on institutions and students remains significant.
According to data released by the U.S. Department of Education, approximately a dozen public institution programs in Indiana would fail to meet the earnings threshold based on recent data. Chalkbeat Indiana reports that institutions potentially affected include Ball State University, Indiana University, and Ivy Tech Community College. The legislation specifically targets bachelor’s and graduate programs, requiring graduates to exceed the earnings of a typical high school graduate to maintain operation and federal student loan funding.
One program specifically highlighted as potentially vulnerable is the Bachelor of Arts in Music at Indiana University. The university’s music school is internationally renowned, attracting students from across the country and generating substantial tuition revenue, particularly from out-of-state students. Eliminating this program would not only deprive students of a highly regarded educational opportunity but also result in a loss of revenue for the university.
The debate surrounding SB 199 also raises questions about the methodology used to assess program value. Michael Hicks, an economist, points out that the legislation appears to be based on a flawed premise – that there are currently any majors in Indiana where graduates earn less than high school graduates. He attributes this to the adoption of “copy-paste legislation” originating from outside the state, specifically referencing research from Georgetown University’s Center on Education and the Workforce, which consistently demonstrates that bachelor’s degree holders earn more than those with only a high school diploma, even when accounting for variations by major.
The potential consequences of SB 199 extend beyond individual programs and institutions. The bill could exacerbate existing challenges in attracting and retaining qualified faculty, particularly in fields deemed less economically viable. It could limit educational opportunities for students pursuing passions and interests that may not immediately translate into high-paying jobs. The long-term impact on Indiana’s workforce and economic competitiveness remains to be seen.
Richard Hellman, an Indianapolis resident, expressed concern that the legislation lacks relevance to Indiana’s specific problems, arguing that voters should demand legislation tailored to the state’s unique needs. The bill’s reliance on external models and data raises questions about its suitability for addressing the complexities of Indiana’s higher education system and labor market.
As SB 199 moves closer to becoming law, stakeholders across Indiana’s higher education sector are closely monitoring its potential impact. The legislation represents a significant shift in the state’s approach to funding and regulating higher education, and its long-term consequences could be far-reaching.