Bill > S1775

Introduced Session

A bill 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

Committee Categories

Dick Durbin (D)*,  Richard Blumenthal (D),  Sherrod Brown (D),  Maggie Hassan (D),  Jack Reed (D),  Bernie Sanders (I),  Brian Schatz (D),  Tina Smith (D),  Elizabeth Warren (D), 

Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (text: CR S3322-3323) (on 06/11/2019)

Official Document