POSTED INOPINION OPINION: Profits grew while students were hurt by a law intended to protect them
Billy L. Clark
May 4, 2021
The Hechinger Report is a national nonprofit newsroom that reports on one topic: education. Sign up for our weekly newsletters to get stories like this delivered directly to your inbox.
What would you say if I suggested that the elimination of just one regulation could save students thousands of dollars in student debt? Ever heard of the 90/10 rule? It applies only to for-profit colleges and requires that no more than 90% of their revenue come from federal sources. Congress passed the regulation in 1992.
The rule was designed to protect students from “bad” schools. But, after nearly 40 years in the for-profit college business, I would posit that 90/10 has done just the opposite. I believe it is the cause of students’ excessive debt — from the direct loans they took out from for-profit colleges and private lenders.
