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Protecting Students and Taxpayers: Stricter Funding Rules for For-Profit Colleges.

This law tightens funding requirements for proprietary (for-profit) higher education institutions by changing the so-called 90/10 rule to 85/15. This means these schools must now derive at least 15% of their revenue from non-federal sources, protecting students from low-quality programs and taxpayers from misuse of federal aid. Institutions failing this requirement will lose access to federal student aid programs for a minimum of two years.
Key points
For-profit colleges must now obtain a minimum of 15% of their revenue from non-federal sources, such as private tuition or state aid.
The change aims to protect students and taxpayers by ensuring schools have market value beyond federal student aid dollars.
Schools violating the new rule will be ineligible to enroll students using federal financial aid (Title IV funds) for at least two years.
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Additional Information
Print number: 118_HR_9004
Sponsor: Rep. Cohen, Steve [D-TN-9]
Process start date: 2024-07-11
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

POST Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_9004.

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 2024-07-11.

What are the main provisions?

Key points include:

  • For-profit colleges must now obtain a minimum of 15% of their revenue from non-federal sources, such as private tuition or state aid.
  • The change aims to protect students and taxpayers by ensuring schools have market value beyond federal student aid dollars.
  • Schools violating the new rule will be ineligible to enroll students using federal financial aid (Title IV funds) for at least two years.
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. Cohen, Steve [D-TN-9].

What is the latest detailed status?

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

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Education Economy