Accountability in Higher Education and Access Through Demand-Driven Workforce Pell: Student Tuition and Transparency System (STATS) and Earnings Accountability
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This proposed rule aims to improve accountability in higher education by implementing new regulations that tie federal loan eligibility to graduate earnings. It requires educational institutions to report comprehensive data on program costs and student financial aid to enhance transparency and program accountability. Institutions must ensure their programs provide economic value or risk losing funding eligibility.
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Key Changes
- Replaces debt-to-earnings metric with a revised earnings premium measure
- Requires institutions to report detailed program-level financial information
- Links federal loan eligibility to the earnings of graduates
Obligations
What this law requires
Educational institutions must report program-level data, including tuition, fees, and financial aid details such as grants and scholarships to the Department of Education.
Institutions must report detailed program-level data, including tuition, fees, and financial aid details such as grants and scholarships to the Department of Education.
Institutions must ensure that their programs meet the new earnings premium measure; those failing this measure in two out of three consecutive years will lose Direct Loan eligibility.
Institutions must establish their programs' eligibility for Direct Loan program funds by updating the list of Direct Loan-eligible programs maintained by the Department.
Institutions must provide students eligible for Pell Grant funds with an indication of their remaining lifetime Pell Grant eligibility and an explanation of how all Pell Grant funds received count against this limit.