Democrats Propose Increased Restrictions on For-Profit College Revenues
Matthew Affojas
July 18, 2024
If passed, the law would require for-profit institutions to generate at least 15% of their revenue from non-federal sources.
A new bill proposes making it harder for for-profit colleges to rely on federal dollars.
It would change the existing 90/10 rule into the 85/15 rule.
These figures refer to the revenue for-profits can generate through federal financial aid.
The 2024 POST Act is the seventh attempt by U.S. Sen. Richard Durbin to reintroduce the 85/15 rule.
A newly proposed bill aims to further restrict how much of a for-profit college’s revenue can come from the federal government.
U.S. Sen. Richard Durbin, a Democrat representing Illinois, introduced the Protecting Our Students and Taxpayers (POST) Act this month. If passed, the law would require for-profit colleges and universities to generate at least 15% of their revenue from nonfederal sources, up from the current 10% minimum known as the 90/10 rule.
