"Starting in 2026, students who enroll in an academic program that leaves graduates with debt they can’t afford will have to sign a disclosure notice, under a new federal rule aimed at providing families with more information about the costs and risks associated with programs.

The disclosure requirement is part of the U.S. Education Department’s new financial value transparency and gainful-employment rule, which was finalized Wednesday and defines what it means to prepare graduates for gainful employment. As part of the rule, programs at for-profit institutions as well as nondegree programs in any sector would have to show that graduates can afford their yearly debt payments and that they are making more than an adult in their state who didn’t go to college. Failing either of those tests in two consecutive years could lead to a program losing access to federal financial aid.

Several higher education groups opposed the new disclosure and reporting requirements, while consumer protection advocates backed the changes. The higher education associations said the focus on economic outcomes for students fails to accurately measure the value of college programs. Department officials said in a fact sheet that they aren’t dismissing 'the myriad non-financial benefits generated by a postsecondary education,'" reports Inside Higher Ed.