Here’s a breakdown of how federal funding counts toward for-profit colleges’ 90/10 rule
Natalie Schwartz
December 21, 2022
The list puts into practice congressional changes limiting revenue for-profit colleges can draw from federal education funds — including military aid.
The U.S. Department of Education released a list this week of federal education assistance funds that for-profit colleges will have to track and limit to retain their access to federal financial aid.
Since the 1990s, federal law has barred for-profit colleges from receiving more than 90% of their revenue from Title IV financial aid funds, which include Pell Grants and federal loans.
This requirement, called the 90/10 rule, was meant to be a proxy for measuring educational value at proprietary institutions. If colleges offer a good return on investment, the thinking goes, then students will be OK with at least partly footing the bill for their own education.
