The "Protecting Students from Worthless Degrees Act" aims to enhance consumer protections for students by ensuring that postsecondary education programs lead to viable employment and professional licensure. It introduces stringent requirements for institutions receiving federal education assistance funds, particularly for programs designed for occupations requiring state licensure. Such programs must fully qualify students to take necessary examinations and obtain certification or licensure in their resident state, metropolitan area, and any state where the institution advertises job readiness. Furthermore, institutions must provide timely placements for academically related pre-licensure requirements like internships. A central provision of the bill is the establishment of new debt-to-earnings standards for all eligible programs, including those traditionally defined as "gainful employment" programs. Programs will be deemed to fail these standards if, for two out of three consecutive years, their students' discretionary debt-to-earnings rate is 20% or higher, and their annual debt-to-earnings rate is 8% or higher. The Secretary of Education is tasked with calculating and publishing these rates annually, using data from federal agencies. Programs that fail these debt-to-earnings standards will face significant consequences, including the inability to disburse federal funds to enrolled students. Institutions will also be prohibited from re-establishing eligibility for a failed program, or a substantially similar one, for a period of three years. The bill explicitly mandates that these earnings outcome requirements be applied equally to all categories of programs and professions, preventing differentiation or delays in implementation. Additionally, the legislation amends program participation requirements for institutions, requiring them to certify that their gainful employment programs meet specific accreditation and licensure prerequisites. Institutions must also notify prospective students if a program does not satisfy licensure requirements in the state where the student intends to work. Finally, the bill strengthens state authorization requirements for distance education, mandating that institutions be legally authorized in every state where their enrolled students are located, while allowing for State Authorization Reciprocity Agreements under certain conditions.