Accountability in Higher Education and Access Through Demand- Driven Workforce Pell: Student Tuition and Transparency System (STATS) and Earnings Accountability
What happened
Secretary of Education amends regulations to implement changes from the Working Families Tax Cuts Act (WFTCA), signed by President Trump on July 4, 2025. This action revises William D. Ford Direct Loan program eligibility by introducing an "earnings accountability framework." This limits Direct Loan eligibility to programs whose graduates meet "certain earnings benchmarks," effective July 1, 2027.
Why it matters
This rule overhauls higher education accountability, replacing previous debt-to-earnings metrics with new earnings premium measures. It protects students from programs that consistently lead to low-earning outcomes. Enhanced transparency, the Student Tuition and Transparency System (STATS), will provide the public with net program cost information.
Who it affects
- ›Higher education institutions receiving federal aid
- ›Students seeking federal Direct Loans
- ›Graduates of college programs
- ›Programs currently eligible for Direct Loans
The receipts are official. The summary is ours.
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