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US HR3179

US HR3179
POST Act of 2019 Protecting Our Students and Taxpayers Act of 2019


summary

Introduced
06/10/2019
In Committee
06/10/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

To amend the Higher Education Act of 1965 regarding proprietary institutions of higher education in order to protect students and taxpayers. This bill modifies requirements for a proprietary (i.e., for-profit) institution of higher education (IHE) to participate in federal student aid programs. Current law requires a proprietary IHE to derive at least 10% of its revenue from sources other than federal student aid. This bill requires a proprietary IHE to derive at least 15% of its revenue from sources other than federal funds (i.e., it replaces the so-called 90/10 rule with an 85/15 rule). Additionally, the bill limits what a proprietary institution may treat as revenue to the school in calculating whether it derives at least 15% of its revenue from sources other than federal funds. Finally, the bill makes compliance with the 85/15 rule a condition of institutional eligibility to participate in federal student aid programs (i.e., failure to comply results in immediate loss of institutional eligibility). Currently, a proprietary IHE must violate the rule for two consecutive years before losing eligibility.

AI Summary

This bill, the Protecting Our Students and Taxpayers (POST) Act of 2019, amends the Higher Education Act of 1965 to modify the requirements for proprietary (for-profit) institutions of higher education to participate in federal student aid programs. The key provisions include replacing the existing "90/10 rule" with an "85/15 rule," which requires proprietary institutions to derive at least 15% of their revenue from sources other than federal funds. The bill also limits what proprietary institutions can treat as revenue and makes compliance with the 85/15 rule a condition of institutional eligibility to participate in federal student aid programs, resulting in immediate loss of eligibility for non-compliance, rather than the current two-year violation period.

Committee Categories

Education

Sponsors (6)

Last Action

Referred to the House Committee on Education and Labor. (on 06/10/2019)

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