For-profit colleges today have to bring in at least 10 percent of their revenue from sources other than federal student aid — the so-called '90/10 rule.' This bill would raise that floor to 15 percent and close several loopholes schools have used to game the current version, including counting institutional loans, income-share agreements, and financing from affiliated companies as 'non-federal' revenue. A school that falls below the 15 percent threshold would lose eligibility for federal student aid for at least two years. The change would affect the roughly 3.6 million students at for-profit colleges — along with the taxpayers who fund Pell Grants and federal student loans — with the tightest impact on chains that depend most heavily on federal aid.
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
- Senate
- Status
- summarized
- Action
- Introduced in Senate
- Action Date
- 2025-06-18
- Date Added
- 2026-04-22
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