New Accountability Rule Links Federal Loans to Graduate Earnings

On July 1, 2026, the U.S. Department of Education (ED) released its Student Tuition and Transparency System (STATS) and Earnings Accountability rule, created under the One Big Beautiful Bill Act (OBBBA), P.L. 119-21. Most provisions take effect July 1, 2027, a full year later than originally proposed, though institutions of higher education (IHEs) may voluntarily implement many changes beginning July 1, 2026.

Financial Value Transparency and Gainful Employment regulations are being integrated into a new single accountability system, retaining the earnings premium but eliminating debt-to-earnings calculations. The rule evaluates academic programs based on graduates’ earnings and ties continued eligibility for the Federal Direct Loan Program to those outcomes. Programs that fail the test in any two out of three consecutive years will lose eligibility for federal loans. The final rule includes additional implementation flexibility and a clearer appeals process for IHEs.

AACOM submitted comments on the proposed rule urging ED to measure physician earnings only after residency and fellowship completion, once physicians are fully trained and practicing independently. In the final rule, the median annual earnings are measured using the fourth tax year following program completion, so physicians may still be in residency. For more detailed information about the new rule, read AACOM’s summary.