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"If lower-income households can't afford to attend, you are creating limits on who people can be," he said.
Prospective students are reconsidering their plans.
Diego Bollo, an incoming UCLA graduate student, said he would not pursue his program under the new rules.
"Education for me has always been a pillar for socioeconomic mobility," Bollo added.
Religious institutions secured a partial concession protecting Pell Grant eligibility for programs that do not use federal loans.
Rabbi A. D.
Motzen of Agudath Israel of America called the exemption "a very reasonable request" that was ultimately successful.
However, Philip Dearborn, president of the Association for Biblical Higher Education Commission on Accreditation, argued that the earnings metric conflicts with the mission of divinity programs.
"Students aren't in it to make money," he said. "They're answering God's call on their lives."
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Dearborn confirmed advocacy groups will continue challenging the framework.