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Protecting Students and Taxpayers: New Rules for For-Profit Colleges

This act changes how for-profit colleges are funded to protect students and taxpayers. These schools must now get at least 15% of their revenue from sources other than federal student aid, aiming to reduce over-reliance on public funds. The changes seek to increase financial accountability and ensure better educational quality.
Key points
For-profit colleges must derive at least 15% of their revenue from non-federal student aid sources.
New rules for calculating revenue are introduced, including restrictions on institutional loans and internal scholarships.
Schools failing to meet these requirements will lose eligibility for federal financial aid for at least two years.
The Department of Education will regularly report to Congress on the revenue sources of for-profit higher education institutions.
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Status:
Introduced
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Additional Information
POST Act of 2025
Print number: S 2107
Sponsor: Sen. Durbin, Richard J. [D-IL]
Process start date: 2025-06-18