U.S. Department of Education Finalizes Rule Tying Federal Student Aid to Graduates' Earnings

The new Student Tuition and Transparency System (STATS) and Earnings Accountability rule requires undergraduate programs to demonstrate that their graduates earn more than the typical high school diploma holder, and graduate programs to show earnings above the typical bachelor's degree holder. Programs failing this test in two out of three years risk losing access to federal Direct Loans. The rule goes into effect on July 1, 2026.