The Ed Department brokered a deal on 90/10 rule changes. Here’s what’s inside.
Natalie Schwartz
March 21, 2022
Dive Brief:
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The U.S. Department of Education reached consensus last week with higher education sector representatives on a proposal for a revamped 90/10 rule. The rule prohibits for-profit colleges from receiving more than 90% of their revenue from federal student aid.
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Representatives of student veterans and for-profit colleges both made concessions in the agreed-upon language, which will go into effect in 2023. For instance, federal money used to support state grants for tuition would count in the 90% calculation under the proposal — a measure that has drawn opposition from for-profit institutions.
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Career Education Colleges and Universities, a group representing the for-profit sector, applauded the department’s willingness to broker a deal on the 90/10 rule. “Although we might not like everything in this language, we can live with it,” said Nicholas Kent, senior vice president of policy and regulatory affairs for the group.
Dive Insight:
Last week, the Education Department wrapped up months of negotiated rulemaking, a process that requires the agency to convene representatives from across higher education to attempt to reach consensus on new regulatory proposals. The sessions involved talks among more than a dozen representatives for different groups, including nonprofit colleges, for-profit institutions and consumer advocates.
