ROI Is the New Accountability

Why it matters

Higher education accountability has entered a new phase. Earnings, workforce alignment, and ROI are now central to federal policy.

The change

Through AHEAD rulemaking, the Department of Education implemented:

• Workforce Pell for short-term programs
• A new earnings-based accountability test
• Broader workforce alignment requirements

Congress set the tone: outcomes over inputs.

The new standard

Programs must show graduates earn more three years after completion than they would have without the credential.

Cost no longer factors into the federal test.

The employer opportunity

The traditional funding model is student pays, employer hires.

That model is breaking down.

In sectors like healthcare, employers face workforce shortages and high turnover costs. Redirecting dollars from bonuses and agency labor toward tuition assistance and loan repayment can improve ROI for both employers and students.

Bottom line

ROI is now the dominant lens in higher education policy.

Institutions that lead with workforce alignment and measurable outcomes will be best positioned in this new era.