Bill > S2107

This bill, known as the Protecting Our Students and Taxpayers (POST) Act of 2025, amends the Higher Education Act of 1965 to modify rules governing proprietary (for-profit) institutions of higher education by implementing a strict 85/15 revenue rule. Under this rule, proprietary institutions must derive at least 15% of their revenues from sources other than federal education assistance funds, with detailed specifications on how revenue and funding sources are calculated. The bill establishes comprehensive guidelines for determining revenue, including what can be counted as non-federal revenue, such as tuition, specific institutional activities, and certain contractual arrangements. It also introduces complex provisions for calculating revenue, including strict rules about scholarships, loans, alternative financing agreements, and exclusions from revenue calculations. Institutions that fail to meet the 85/15 requirement will be ineligible for federal education assistance for at least two fiscal years and must demonstrate compliance with certification requirements to regain eligibility. Additionally, the Secretary of Education is required to submit annual reports to Congress detailing each proprietary institution's revenue sources. The bill's provisions will take effect in the second full award year following its enactment, aiming to protect students and taxpayers by ensuring for-profit educational institutions have diverse revenue streams and are not overly dependent on federal funding.

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https://www.congress.gov/bill/119th-congress/senate-bill/2107/all-info