Federal Regulation

STATS and Earnings Accountability

The Student Tuition and Transparency System (STATS) and Earnings Accountability final regulations implement the accountability framework established by Congress in the Working Families Tax Cuts Act, formerly referred to as the One Big Beautiful Bill Act, enacted July 4, 2025.

Through STATS reporting and the new Earnings Accountability provisions, nearly all undergraduate and graduate degree and certificate programs become part of a federal evaluation process that examines whether former students are earning above federally established benchmarks. Programs that fail the earnings test two out of three consecutive years face loss of eligibility for Direct Loans, and institutions with widespread failing programs could lose access to other financial aid programs such as Pell grants.

Action to be taken

Form a cross-functional implementation team that includes Financial Aid, Institutional Research, Academic Affairs, Digital Learning, IT, and other key stakeholders.
Identify programs subject to STATS reporting and confirm your institutional program inventory.
Review data quality for program inventories, CIP codes, award levels, and completion data.
Determine your implementation strategy, including whether to early implement the STATS framework.
Assess online and professional licensure programs for reporting readiness and cross-functional coordination.
Educate institutional leadership on the new accountability framework and implementation timeline.
Monitor Department of Education guidance for additional reporting and implementation updates.

Effective Date

July 1, 2027: Most STATS and Earnings Accountability regulations become effective under the Higher Education Act’s master calendar.

Exceptions:

July 1, 2026: Institutions may choose to implement certain provisions early, including specified changes to 34 CFR 685 related to the new accountability framework.
October 1, 2026: Institutions are expected to begin submitting STATS reporting data for the required award years.

Resources

Negotiated Rulemaking for Higher Education 2025 (AHEAD Committee)
New OB3 Federal Statute,; July 1, 2026 Title VIII, Committee on Health, Education, Labor and Pensions: Sec. 84001. Ineligibility Based on Low Earning Outcomes (Page 3)
U.S. Department of Education Reaches Consensus on Historic New Accountability Framework and Concludes Higher Education Reform Rulemaking Sessions; ED Press Release, January 9, 2026
What Week Two of AHEAD Rulemaking on Accountability Measures Means for Digital Learning; WCET Frontiers, January 21, 2026.
Notice of Proposed Rulemaking (NPRM): Accountability in Higher Education and Access Through Demand-Driven Workforce Pell: Student Tuition and Transparency System (STATS) and Earnings Accountability; April 20, 2026.
Final Regulations: Student Tuition and Transparency System (STATS) and Earnings Accountability; July 1, 2026.
What Digital Learning Professionals Should Know About STATS and Earnings Accountability; WCET Frontiers; July 16, 2026.

Regulation progress: Step 7 of 8

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