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Stricter Funding Rules for For-Profit Colleges to Protect Students and Taxpayers (85/15 Rule).

This law tightens financial oversight of proprietary (for-profit) colleges by implementing the 85/15 rule. These schools must now prove that at least 15% of their revenue comes from non-federal sources, ensuring they offer value that students are willing to pay for privately. The goal is to shield students from low-quality institutions reliant solely on public funds and safeguard taxpayer money.
Key points
New 85/15 Revenue Rule: For-profit colleges must derive a minimum of 15% of their income from sources other than federal student aid.
Closing Loopholes: Institutional loans and scholarships funded by affiliated entities will generally no longer count toward the required 15% non-federal revenue.
Loss of Federal Aid: Schools failing the 85/15 requirement will lose access to all federal student financial aid programs for a minimum of two years.
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Additional Information
Print number: 118_S_4701
Sponsor: Sen. Durbin, Richard J. [D-IL]
Process start date: 2024-07-11
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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_S_4701.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-07-11.

What are the main provisions?

Key points include:

  • New 85/15 Revenue Rule: For-profit colleges must derive a minimum of 15% of their income from sources other than federal student aid.
  • Closing Loopholes: Institutional loans and scholarships funded by affiliated entities will generally no longer count toward the required 15% non-federal revenue.
  • Loss of Federal Aid: Schools failing the 85/15 requirement will lose access to all federal student financial aid programs for a minimum of 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 Sen. Durbin, Richard J. [D-IL].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Education Economy