Federal Rule Links Postsecondary Program Eligibility to Graduate Earnings

The U.S. Department of Education has finalized a new accountability rule, the Student Tuition and Transparency System (STATS) and Earnings Accountability rule, for postsecondary education programs. This rule mandates that undergraduate graduates must earn more than typical high school diploma holders, and graduate program alumni must surpass the earnings of typical bachelor's degree holders. Programs failing this earnings premium measure in two out of three consecutive years risk losing eligibility for the federal Direct Loan program.