Federal Regulation

Accountability Measures

Federal regulations are being developed to implement institutional and programmatic accountability, including revisions to the 2024 version of Gainful Employment and Financial Value Transparency regulations in accordance with the directives of the One Big Beautiful Bill (OB3) Act. These regulations are intended to provide consistent and helpful program and earnings information to all stakeholders and to discontinue undergraduate and graduate programs from financial aid eligibility if the graduates earn less than a comparison group as described in the regulations.  Additionally, the regulations revise the existing financial value transparency and gainful employment regulations to simplify and align with the new accountability framework.

Consensus was reached by the negotiated rulemaking committee on January 9, 2026. Draft Consensus Language from January 9, 2026.

  • Topic One: Accountability Technical and Conforming Changes
    • § 600.10 Date, extent, duration, and consequence of eligibility
    • § 600.21 Updating application information
    • § 668.43 Institutional and programmatic information
    • § 668.91 Initial and final decisions
    • § 685.102 Definitions
    • § 685.300 Agreements between an eligible school and the Secretary for participation in the Direct Loan program
  • Topic Two: General Definitions, Cohort Construction and Comparison Groups
    • § 668.2 General definitions
  • Topic Three: Student Tuition and Transparency System (STATS): Metric Calculation o § 668.401 Student tuition and transparency system scope and purpose
    • § 668.402 Student tuition and transparency system framework
    • § 668.403 Calculating earnings premium measure
    • § 668.404 Process for obtaining data and calculating earnings premium measure
    • § 668.405 Determination of the earnings premium measure
  • Topic Four: Student Tuition and Transparency System (STATS): Reporting Requirements
    • § 668.406 Reporting requirements
    • § 668.407 Severability
  • Topic Five: Earnings Accountability and Student Warnings
    • § 668.601 Earnings accountability scope and purpose
    • § 668.602 Earnings accountability criteria
    • § 668.603 Low-earning outcome programs
    • § 668.604 Certification requirements for Gainful Employment (GE) programs and eligible non-GE programs
    • § 668.605 Student warnings
    • § 668.606 Severability 

Action to be taken

  • Track the rulemaking process closely to learn of public comment opportunities and regarding effective dates affecting the institution's programs.
  • Prepare and review data reporting processes of earnings outcomes for program completers.
  • Review and enhance transparency for current and prospective students.
  • Share information across the institution to manage process developments and changes.
  • Coordinate with associations to provide joint public comments, ensuring that any sector-wide concerns are represented.

Effective Date

  • Negotiated Rulemaking began in January 2026.

Resources

Regulation progress: Step 3 of 8

  1. Step 1 Notice of Intent to Establish a Rulemaking with Public Comment Period.
  2. Step 2. Negotiated Rulemaking Committee Nominations and Schedule of Committee Meetings with Public Nominations.
  3. Step 3. Negotiated Rulemaking Committee Meetings
  4. Step 4 Office of Management & Budget, Office of Information and Regulatory Affairs Review of Proposed Regulations
  5. Step 5 Notice of Proposed Rulemaking (NPRM) and Public Comment Period (release of proposed regulations)
  6. Step 6 Office of Management & Budget, Office of Information and Regulatory Affairs Review of Final Regulations
  7. Step 7 Release of Final Regulations
  8. Step 8 Effective Date