Washington, D.C. — The U.S. Department of Education has released a Notice of Proposed Rulemaking (NPRM) outlining a new accountability framework for postsecondary education programs, linking federal financial aid eligibility to graduate earnings outcomes.
The proposal, authorized under the Working Families Tax Cuts Act, would apply to all higher education institutions regardless of sector or tax status. It aims to address concerns over rising student debt and inconsistent returns on investment across academic programs.
Under the proposed rule, undergraduate programs would lose access to federal student loans if their typical graduates earn less than individuals with only a high school diploma. Graduate programs would face similar standards, requiring earnings above those of the average bachelor’s degree holder. Programs that repeatedly fail to meet these benchmarks could also lose eligibility for Pell Grants.
Education officials say the rule is intended to create a more uniform accountability system across higher education. “If postsecondary education programs do not leave graduates better off, taxpayers should not subsidize them,” said Under Secretary Nicholas Kent in a statement.
The proposal follows recommendations developed through negotiated rulemaking by the Accountability in Higher Education and Access Through Demand-driven Workforce Pell (AHEAD) Committee, a stakeholder group representing institutions, students, employers, and taxpayers. The committee reached consensus earlier this year on a framework tying program eligibility to earnings data reported to the federal government.
The Department said the rule would replace multiple existing accountability measures that vary by credential type and sector, simplifying compliance while expanding oversight across all programs.
The NPRM is open for public comment through May 20, 2026, via the federal rulemaking portal. After reviewing feedback, the Department may revise the proposal before issuing a final rule.
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