For-profit college group warns Maryland 90/10 rule could conflict with federal law

Higher Ed Dive 

Natalie Schwartz
May 12, 2021
Dive Brief:
  • Career Education Colleges and Universities, an organization representing for-profit schools, urged Maryland’s higher education regulators in a letter this week to interpret the state’s recently passed 90/10 law the same way as federal statute.
  • Maryland legislators passed a law last year requiring for-profit colleges that enroll state residents to derive at least 10% of their revenue from sources other than federal funding, which includes military education benefits. A rulemaking process is also expected for a similar recent change to federal law.
  • CECU’s letter asks the Maryland Higher Education Commission to hold off on interpreting and enforcing the new state law until regulations are finalized for the federal 90/10 rule.
Dive Insight:
The leaders of five for-profit campuses in Maryland and two other industry groups joined CECU’s letter, which expressed concern that the two laws could have differing definitions of federal funds.
Jason Altmire, CECU’s president and CEO, said the letter is also intended as a warning to other states considering 90/10 legislation that such measures could “stray outside the bounds of the federal intent.” California lawmakers proposed a bill similar to Maryland’s law in February.