ED Proposes Rule Holding Colleges Accountable for Low Graduate Earnings

Press Release

U.S. Department of Education Issues Proposed Rule to Hold Colleges and Universities Accountable for Low Earning Outcomes

April 17, 2026

The U.S. Department of Education (the Department) today issued a Notice of Proposed Rulemaking (NPRM) to establish a postsecondary education accountability framework that will break the cycle of low return on investment for students and taxpayers. The proposed accountability framework is authorized by President Trump’s historic Working Families Tax Cuts Act (the Act) as well as other existing Department authorities. The proposal will hold all institutions and their programs accountable for low earning outcomes, regardless of tax status or sector.

As the federal student loan portfolio approaches $1.7 trillion and more students are left financially worse off than if they had never attended college, now is the time for a hard reset in higher education. The Act presents a once-in-a-generation opportunity to rein in unsustainable student loan borrowing, better align postsecondary education with workforce needs, and bring uniform accountability across the higher education system.

Under the proposed rule, if the typical graduate of an undergraduate program does not earn as much as a high school graduate, the program will no longer be eligible for federal student loans. Graduate programs must similarly lead to earnings above those of an average bachelor’s degree holder. Programs that routinely fail to provide students with a reliable return on investment would lose access to federal student loans, and in certain cases, Pell Grants.

“The Trump Administration’s proposed accountability framework is grounded in common sense: if postsecondary education programs do not leave graduates better off, taxpayers should not subsidize them,” said Under Secretary of Education Nicholas Kent. “This consensus-backed framework will drive meaningful change in postsecondary education, ending years of regulatory whiplash and addressing student debt that has left too many students worse off.”

This is the final of three proposed rules being released by the Department to implement historic student aid reforms enacted through the Act. The NPRM will be open for public comment for 30 days. The Department may make changes to the rule in response to public comments. To review the full NPRM, see here.

Public Comment Period:

Public comments on the proposed rules can be submitted through the Federal eRulemaking Portal at www.regulations.gov. The Department will not accept comments submitted by fax or email. The Department must receive comments on or before May 20, 2026. The Department will consider and may make changes to the proposed regulations in response to substantive comments.

About the AHEAD Committee’s Consensus:

In January, the Accountability in Higher Education and Access Through Demand-driven Workforce Pell (AHEAD) Committee reached consensus on the entire package of proposed accountability regulations. The Committee consisted of stakeholders representing American taxpayers, the legal aid community, institutions of higher education, the business community, and students.

The AHEAD Committee’s agreed-upon framework holds all programs – from certificate to graduate programs – accountable for their graduates’ earnings, according to data reported to the federal government. The framework developed by the Committee is grounded in the Act as well as other existing Department authorities, including Gainful Employment and the Quality Assurance Authority. The new accountability standard replaces overlapping sets of rules that varied by credential and sector, simplifying compliance for schools and ensuring that all students are protected from low earning programs.

Previous Administrations devoted years to negotiating accountability measures without reaching consensus. In contrast, the AHEAD Committee successfully reached agreement on a robust, unified proposal that the Department has now advanced in its NPRM. This agreed-upon language will better protect students and taxpayers by requiring institutions to sunset programs that do not deliver a strong financial return or to seek funding outside the federal financial aid system.

Background:

Section 492 of the Higher Education Act of 1965 (HEA) requires that the Secretary of Education solicit public involvement in the development of proposed regulations before publishing a NPRM to implement federal student assistance programs authorized under Title IV. After obtaining advice and recommendations from the public and stakeholders, the Secretary conducts negotiated rulemaking to develop the proposed regulations.

On July 25, 2025, the Department announced its intention to engage in negotiated rulemaking to implement changes made to the HEA by the Act.

On January 9, 2026, the Department concluded the second session of the AHEAD Committee, which focused on the accountability structure, over five days of deliberation and negotiations after which all participants supported the negotiated draft regulations. Under the negotiated rulemaking process, the Department moved to publish the agreed-upon regulations in the NPRM.

For more information about the negotiated rulemaking process, see here.

Contact

Press Office (202) 401-1576 press@ed.gov

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