Yesterday, ED published an Electronic Announcement addressing some of the implications of and procedures for early implementing the Student Tuition and Transparency System (STATS) and Earnings Accountability Final Rule (the “Accountability Final Rule”). Following our July 28 webinar on the Accountability Final Rule, AACS sought additional guidance from ED about early implementation in response to AACS member questions. We have been in communication with ED, and we understand yesterday’s Electronic Announcement to provide some elements of the guidance that AACS requested. AACS will stay in touch with the Department to provide maximum clarity to AACS members on this high-impact regulation that impacts our community. Electronic Announcement Overview - The new guidance includes a “catch-up” deadline for institutions that may be delinquent on prior year reporting requirements under the Financial Value Transparency and Gainful Employment Rule (“FVT/GE Rule”).
- Whether a school decides to early implement the Accountability Final Rule has no impact on “whether an institution is subject to the new earnings premium measure on and after July 1, 2027, nor does it impact the consequences of failing that measure.”
- Institutions can register to attend ED’s office hours session on Thursday, September 10, 2026, from 3-4 PM ET, during which ED will discuss the new guidance.
FVT/GE Reporting “Catch-Up” Deadline
In yesterday’s Electronic Announcement, ED stated that at least 1,900 institutions have not reported or have underreported the FVT/GE reporting data from the 2024 and 2025 reporting cycles (due September 30, 2025 and October 1, 2025, respectively). Such institutions will now have until January 15, 2027, to submit unreported or underreported data for these cycles. ED attached to the Electronic Announcement a spreadsheet showing the FVT/GE data files that are missing from each institution’s previous submissions, if any. To be clear, the spreadsheet does not assess whether the files are complete, only whether the files were submitted.
ED stated that the agency intends “to examine the completeness of FVT/GE submissions at a future point[,]” adding that “[i]ncomplete or inaccurate submissions may raise concerns about an institution's administrative capability to continue participating in the Title IV programs.” ED stated the agency would not grant reporting requirement extensions beyond those discussed in the Electronic Announcement and would consider fines, sanctions, or “other actions [ED] deems appropriate” for institutions that fail to timely comply. Early Implementation On July 1, 2026, ED published the Accountability Final Rule. Nearly all provisions of the Accountability Final Rule become effective on July 1, 2027, and schools have the option to early implement provisions of the Accountability Final Rule before the July 1, 2027, effective date. All schools must decide whether to early implement by October 1, 2026. A school will notify ED it is choosing the early implementation option by fulfilling the reporting requirements under the Accountability Final Rule. If a school elects not to early implement, it will notify ED of this decision by fulfilling the reporting requirements under the FVT/GE Rule. Additional details about reporting requirements under both rules and the October 1 deadline are available in the GENERAL-26-43 Electronic Announcement (July 1, 2026).
Yesterday’s Electronic Announcement clarifies that early implementation “does not impact whether an institution is subject to the new earnings premium measure on and after July 1, 2027, nor does it impact the consequences of failing that measure.” In other words, schools that choose not to early implement will still be subject to the Accountability Final Rule earnings test on the same timeline as schools that do choose to early implement. Additionally, whether an institution early implements the Accountability Final Rule does not have an impact on when sanctions would first apply to programs that fail the earnings test under the Accountability Final Rule. A decision regarding whether to early implement should be made on an institution-by-institution basis in consultation with legal counsel and financial aid professionals. We understand how important the Accountability Final Rule is to all of our members, and AACS is committed to continuing to provide educational materials on this topic. |
