Deep Dive Into Proposed 90/10 Rule and Changes of Ownership Regulations

NASFAA

Bill Dejean
August 11, 2022
Last month, the Department of Education (ED) issued a Notice of Proposed Rulemaking (NPRM) requesting public comments on draft regulations to implement statutory changes to the 90/10 rule and to update the rules on changes of ownership.
The 90/10 rule and changes of ownership were covered in the Institutional Programmatic Eligibility committee in early 2022. Other topics covered in that session included gainful employment, certification procedures, and financial responsibility. ED has indicated that it does not plan to release draft language on any of the remaining topics from the institutional and programmatic eligibility negotiations until spring of 2023, meaning that the earliest those rules could become effective would be July 1, 2024.
90/10 Rule
The American Rescue Plan (ARP) amended the Higher Education Act (HEA) of 1965 requirement that proprietary institutions of higher education derive at least 10% of their revenue from non-Title IV student aid (allowing up to 90% of revenue to come from Title IV aid), known as the “90/10 rule.” The law now requires that the 90% federal revenue cap include all sources of federal funding, not just Title IV student aid funds.

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