Bill > HR4026

This bill amends the Higher Education Act of 1965 to establish stricter revenue requirements for proprietary (for-profit) institutions of higher education, known as the 85/15 rule. The bill requires these institutions to derive at least 15% of their revenues from sources other than federal education assistance funds, such as tuition, fees, campus activities, job training contracts, and non-Title IV eligible programs. The calculation of revenue is complex, involving specific accounting methods that exclude certain federal funds, loans, and scholarships. Institutions that fail to meet this 15% non-federal revenue threshold will be ineligible for federal education assistance for at least two fiscal years. The bill also requires the Secretary of Education to submit annual reports to Congress detailing the revenue sources of each proprietary institution. The new provisions will take effect starting with the second full award year after the bill's enactment, providing institutions time to adjust their financial structures to comply with the new requirements. The primary goal of the bill is to protect students and taxpayers by ensuring that for-profit colleges have a significant financial stake beyond federal educational funding and are not solely reliant on government money.

Education

https://www.congress.gov/bill/119th-congress/house-bill/4026/all-info