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New Rules for For-Profit College Conversion to Non-Profit

This act establishes strict new rules for for-profit colleges seeking to convert to non-profit status. It aims to protect students and taxpayers by ensuring that these institutions genuinely operate for public benefit, not private gain. Citizens can expect greater transparency and integrity in higher education.
Key points
For-profit colleges must meet strict criteria to become non-profit, including no financial benefit for former owners.
Converted institutions will be treated as for-profit for at least 5 years, ensuring a transition period and oversight.
Applications and decisions for conversion must be publicly published, increasing transparency for citizens.
Institutions are prohibited from marketing themselves as non-profit without full government and tax-exempt approval.
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Additional Information
Print number: 117_HR_2700
Sponsor: Rep. McBath, Lucy [D-GA-6]
Process start date: 2021-04-20
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

For-Profit College Conversion Accountability Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_2700.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-04-20.

What are the main provisions?

Key points include:

  • For-profit colleges must meet strict criteria to become non-profit, including no financial benefit for former owners.
  • Converted institutions will be treated as for-profit for at least 5 years, ensuring a transition period and oversight.
  • Applications and decisions for conversion must be publicly published, increasing transparency for citizens.
  • Institutions are prohibited from marketing themselves as non-profit without full government and tax-exempt approval.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. McBath, Lucy [D-GA-6].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Education and Labor.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Education