Congress is deciding the future of the 90/10 rule. Here’s what you need to know.

Higher Ed Dive 

Natalie Schwartz

February 24, 2021

The relief package lawmakers are considering includes a measure that would further restrain how much federal aid for-profit colleges can receive.

Tucked away in Congressional Democrats’ coronavirus relief proposal is a measure that would shake up the for-profit college industry.

They’re hoping to change the 90/10 rule, which bars for-profit schools from receiving more than 90% of their revenue from Title IV federal student aid.

For-profit colleges self-report to the U.S. Department of Education about whether they meet the rule’s requirements. If they fail for two consecutive fiscal years, they lose access to federal student aid for at least the next two years.

Military education benefits such as from the GI Bill don’t count toward that calculation, however. In recent years, for-profits have been targeting student veterans for enrollment and receiving an outsized share of GI Bill benefits.

New America, a left-leaning think tank, is one of the groups pressing the Biden administration to count all forms of federal aid in the 90% calculation. Under the current law, for-profits can maintain the required ratio of Title IV aid and other revenue sources by recruiting veterans, said Clare McCann, deputy director for federal higher education policy at New America.

CONTINUE READING