Higher Education
Students We Serve

Making the New Higher Education Accountability Framework Pay Off

Without stronger accountability, students from low- and middle-income backgrounds risk being burdened by debt with little chance of advancing up the economic ladder

files October 08, 2025 by Roxanne Garza
Multiethnic group of students talking with instructor in a classroom on a college campus.

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, is the largest overhaul of federal higher education policy since the 2008 reauthorization of the Higher Education Act (HEA). While the law introduces a new accountability framework intended to ensure that students only borrow for programs that pay off, it falls short in several areas — especially for students from low-income backgrounds.

The Challenge

Student debt in the U.S. has ballooned to more than $1.7 trillion, with over 40 million borrowers holding debt but no degree — a combination that leaves many unable to repay their loans. Loan defaults are rising again after years of COVID-related payment pauses, graduation rates vary widely across institution types, and the unemployment rate for recent college graduates is increasing.  These realities only intensify the ongoing debate about the value and return on investment of higher education.

Download the Policy Brief (PDF)

Key Recommendations from EdTrust

EdTrust’s new policy brief analyzes the OBBBA accountability framework and provides actionable recommendations to strengthen the framework, including:

  • Inclusion of all programs: Hold all programs eligible for federal student aid accountable, including undergraduate certificate programs.
  • Comprehensive metrics: Expand accountability to include a measure of debt-to-earnings, upward mobility, and completion rates — rather than focusing solely on earnings.
  • Transparency for students and taxpayers: Require clear, accessible data on all programs, including program costs, debt levels, and projected earnings, so students can make informed decisions and taxpayers can assess the value of federal investments.

Why It Matters

Without stronger accountability, students — especially those from low- and middle-income backgrounds — risk being trapped in debt with little chance of climbing the economic ladder.

Strengthening the framework is essential to:

  • Protect students from unaffordable debt and low-value programs
  • Ensure that higher education remains a pathway to opportunity
  • Guarantee that public dollars fund programs that deliver real value and prepare students for meaningful careers

Photo by Allison Shelley/Complete College Photo Library