List of Federal Education Assistance for Proprietary Institutions of Higher Education To Include as Federal Revenue
December 21, 2022
AGENCY:
Office of Postsecondary Education, Department of Education.
ACTION:
Notice.
SUMMARY:
This notice lists the Federal education assistance funds for qualifying students that proprietary institutions of higher education must include as Federal revenue in their non-Federal revenue calculation (known as “90/10”).
DATES:
Institutions must include these Federal education funds in their 90/10 calculations for fiscal years beginning on or after January 1, 2023.
FOR FURTHER INFORMATION CONTACT:
Ashley Clark, U.S. Department of Education, 400 Maryland Avenue SW, Room 2C185, Washington, DC 20202. Telephone: (202) 453-7977. Email: Ashley.Clark@ed.gov.
SUPPLEMENTARY INFORMATION:
Background: On October 28, 2022, the Department published final regulations amending 34 CFR 668.28, “Non-Federal Education Assistance Funds (90/10).” [] The final regulations implemented amendments to sections 487(a) and (d) of the Higher Education Act of 1965, as amended (HEA), made by the American Rescue Plan Act of 2021 (ARP).[] Sections 487(a) and (d) govern how proprietary institutions of higher education (“institutions”) must calculate their non-Federal revenue percentage ( e.g., the 90/10 calculation).[] Per section 487(a) of the HEA, institutions must derive not less than 10 percent of their revenue from sources other than Federal education assistance funds that are disbursed or delivered to or on behalf of a student to attend the institution. The statutory change requires that institutions count all Federal education assistance funds as Federal revenue in their 90/10 calculation for fiscal years beginning on or after January 1, 2023. Regulations at 34 CFR 668.28 identify the types of funds that institutions must treat as Federal and non-Federal revenue. 34 CFR 668.28(a)(1)(i) provides that the Secretary will identify Federal education assistance funds, by agency, to assist proprietary institutions in complying with the 90/10 requirement. The Department is publishing this notice in the Federal Register in accordance with § 668.28(a)(1)(i), and we will publish updates to this list for subsequent fiscal years as needed.
