Section 668.402 - Financial value transparency framework(a)General. The Secretary assesses the program's debt and earnings outcomes using debt-to-earnings rates (D/E rates) and an earnings premium measure.(b)Debt-to-earnings rates. The Secretary calculates for each award year two D/E rates for an eligible program, the discretionary debt-to-earnings rate, and the annual debt-to-earnings rate, using the procedures in §§ 668.403 and 668.405 .(c)Outcomes of the D/E rates.(1) A program passes the D/E rates if-(i) Its discretionary debt-to-earnings rate is less than or equal to 20 percent;(ii) Its annual debt-to-earnings rate is less than or equal to 8 percent; or(iii) The denominator (median annual or discretionary earnings) of either rate is zero and the numerator (median debt payments) is zero.(2) A program fails the D/E rates if-(i) Its discretionary debt-to-earnings rate is greater than 20 percent or the income for the denominator of the rate (median discretionary earnings) is negative or zero and the numerator (median debt payments) is positive; and(ii) Its annual debt-to-earnings rate is greater than 8 percent or the denominator of the rate (median annual earnings) is zero and the numerator (median debt payments) is positive.(d)Earnings premium measure. For each award year, the Secretary calculates the earnings premium measure for an eligible program, using the procedures in §§ 668.404 and 668.405 .(e)Outcomes of the earnings premium measure.(1) A program passes the earnings premium measure if the median annual earnings of the students who completed the program exceed the earnings threshold.(2) A program fails the earnings premium measure if the median annual earnings of the students who completed the program are equal to or less than the earnings threshold.