OME Advocate Newsletter

On July 1, 2026, the U.S. Department of Education (ED) released its Student Tuition and Transparency System (STATS) and Earnings Accountability rule, created under the One Big Beautiful Bill Act (OBBBA), P.L. 119-21. Most provisions take effect July 1, 2027, a full year later than originally proposed, though institutions of higher education (IHEs) may voluntarily implement many changes beginning July 1, 2026.

Financial Value Transparency and Gainful Employment regulations are being integrated into a new single accountability system, retaining the earnings premium but eliminating debt-to-earnings calculations. The rule evaluates academic programs based on graduates’ earnings and ties continued eligibility for the Federal Direct Loan Program to those outcomes. Programs that fail the test in any two out of three consecutive years will lose eligibility for federal loans. The final rule includes additional implementation flexibility and a clearer appeals process for IHEs.

AACOM submitted comments on the proposed rule urging ED to measure physician earnings only after residency and fellowship completion, once physicians are fully trained and practicing independently. In the final rule, the median annual earnings are measured using the fourth tax year following program completion, so physicians may still be in residency. For more detailed information about the new rule, read AACOM’s summary.

Whether you’re a seasoned advocate or new to policy, join AACOM Advocacy Day on September 16-17 to advance osteopathic medical education priorities with your legislators. Register by July 31 for the best opportunity to participate in virtual congressional meetings and build on recent momentum, including new cosponsors Rep. Jennifer Kiggans (R-VA) for the FAIR Act, H.R. 2314, and Reps. Derrick Van Orden (R-WI) and Thomas Suozzi (D-NY) for the Community TEAMS Act, H.R. 3885.

"AACOM Advocacy Day showed me that showing up matters. One conversation with a legislator can shape the future of healthcare access. Being a physician isn't just about the exam room, it's about speaking up for patients and the policies that shape their care." - Mara Krutsinger, OMS IV, ICOM

Register Today!

• On June 26, 2026, ED released a Dear Colleague Letter (DCL) reminding institutions of their new authority, effective July 1, 2026, to set lower annual loan limits for specific programs under the OBBBA.
• The DCL outlines best practices for using this authority and encourages institutions to counsel students to borrow only what they need to maintain a manageable debt burden. More information is available in the National Association of Student Financial Aid Administrators’ press release.
• AACOM has updated its federal financial aid FAQs, available on AACOM’s Student Financial Resources page, and will continue to share new information as it becomes available. Students with specific questions or concerns should contact their college’s financial aid office.

• On June 30, 2026, a federal court ruled against the Trump administration in National Council of Nonprofits et al. v. McMahon, blocking enforcement of a final Public Service Loan Forgiveness (PSLF) rule that would have allowed the Secretary of Education to disqualify employers from the program if their work was deemed to have a “substantial illegal purpose.”
• The court found the rule unlawful because it exceeded ED’s statutory authority, was arbitrary and capricious and violated the First Amendment by tying loan forgiveness eligibility to whether an employer’s work aligned with the administration’s political priorities. The court ordered ED to stop enforcing the rule immediately.

• On July 1, 2026, the House Committee on Education and Workforce, Subcommittee on Health, Employment, Labor and Pensions, held a hearing, “Direct Contracting: A Prescription for Lower Health Care Costs.”
• The Subcommittee examined whether direct healthcare contracts between employers and providers could help address rising healthcare costs and improve quality of care.
• For more information, view AACOM’s hearing summary.