Higher Education Groups Urge Changes to Proposed Federal Accountability Framework

The proposed rule published in the April 20 Federal Register, "Accountability in Higher Education and Access Through Demand-Driven Workforce Pell: Student Tuition and Transparency System (STATS) and Earnings Accountability," implements key elements of the One Big Beautiful Bill Act (OBBB). It would establish an earnings-based standard to hold academic programs nationwide accountable for their students' economic outcomes.

While the groups support transparency, their comments warn that the framework relies on flawed metrics, an inadequate implementation timeline, and enforcement mechanisms that overstep congressional intent.

In the letter addressed to ED's Office of Postsecondary Education, ACE President Ted Mitchell emphasized that the department's current regulatory approach threatens to shortchange stakeholders and limit student access to federal aid through inaccurate data modeling.

"A final product rushed to a final consensus vote shortchanges all stakeholders, especially students," Mitchell wrote, pressing ED to allow more time for negotiated rulemaking and ensure comprehensive representation from public, private, nonprofit, and minority-serving institutions on the rulemaking committee.

The comments focus on several key areas of the proposed regulation:

• Flawed certificate earnings thresholds: The OBBB ties accountability to the median earnings of individuals aged 25-34. The coalition pointed out that undergraduate certificate completers are increasingly younger-with those under 24 outnumbering older completers for the first time in the 2023-24 academic year. Comparing a 23-year-old certificate holder to a 34-year-old with a decade of workforce experience distorts the data. The letter argues that ED should use a more accurate comparison group, such as high school graduates aged 20-24.
• Restricted appeals process: Under the proposed rule, institutions can only appeal calculations based on mathematical errors made by ED. ACE and the other organization are requesting a robust appeals process that allows institutions to present earnings data using alternative state-level data systems and factor in regional economic variances, geographical disparities, or systemic pay inequities.
• Overreaching punitive measures: The groups said that ED's proposal to strip all Title IV eligibility-including Pell Grants-from low-earnings programs goes well beyond the scope of the law. Congress clearly intended to limit penalties strictly to Direct Loan eligibility.
• Overwhelming administrative burden: ED estimates the new reporting metrics will require more than 1.6 million burden hours from institutions. Because of the sheer volume of data tracking required, the coalition is urging the Department to adhere to the traditional Master Calendar and push the implementation date to July 1, 2027, at the earliest, rather than the proposed July 1, 2026, date.

"Determinations carry such a significant impact for students that it is incumbent on the Department to ensure they are collecting the most accurate data on earnings outcomes," the comments conclude, asking federal regulators to give the recommendations full consideration to better serve both students and campuses.