For-profit colleges would have to prove that at least 15 percent of their revenue comes from sources other than federal student aid — a tightening of the current 90/10 rule, which requires only 10 percent. The bill also rewrites how that revenue is counted: GI Bill and military tuition assistance would be counted as federal funds (closing a loophole these schools have used for years), and income-share agreements between students and the school would only count under strict conditions. Schools that fail the new standard lose federal aid eligibility for at least two years. Roughly 2,000 for-profit institutions enrolling about a million students would be affected.
Congressional Summary
Protecting Our Students and Taxpayers Act of 2025 or the POST Act of 2025This bill requires proprietary (i.e., for-profit) institutions of higher education (IHEs) to derive a larger portion of their revenues from nonfederal sources by replacing the existing 90/10 rule with an 85/15 rule.Specifically, the bill requires a proprietary IHE to derive at least 15% of its revenue from sources other than federal education assistance funds. (Currently, a proprietary IHE must derive at least 10% of its revenue from sources other than federal education assistance funds.)Additionally, the bill specifies how revenue must be calculated for purposes of the 85/15 rule. (Currently, the Higher Education Act of 1965 and accompanying regulatory provisions specify how revenue must be calculated for purposes of the 90/10 rule.)Finally, the bill makes a proprietary IHE that fails to meet the 85/15 rule's requirements for a fiscal year ineligible to participate in federal student aid programs for at least two institutional fiscal years. However, the proprietary IHE may regain eligibility if it complies with all eligibility and certification requirements for at least two institutional fiscal years. (Currently, if a proprietary IHE fails to meet the 90/10 rule's requirement in a single year, then its certification to participate in federal student aid programs becomes provisional for two institutional fiscal years. Further, if a proprietary IHE fails to meet the rule's requirements in two consecutive years, then it loses its eligibility to participate in these programs for at least two institutional fiscal years.)
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-06-17
- Date Added
- 2026-04-21
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