“To amend the Higher Education Act of 1965 regarding proprietary institutions of higher education in order to protect students and taxpayers.”
No CRS summary available for this bill.
This section revises the definition of proprietary institution of higher education under Title IV of the Higher Education Act by increasing the minimum non-federal revenue requirement to 15% of total revenues (from 10%) from sources other than federal education assistance funds and by specifying new calculation rules. (Thus, proprietary institutions—for-profit schools eligible for federal student aid—must use cash-basis accounting and may count as qualifying revenue only tuition from certain non-Title IV programs, proceeds from required student activities and federal job-training contracts, unrelated outside grants and restricted-fund institutional scholarships, and repayments on bona fide institutional loans; federal funds are presumed to cover institutional charges unless offset by qualifying non-federal sources, and most institutional loans and alternative financing arrangements are excluded.)
This section provides that the amendments made by this Act take effect on the second full award year (i.e., July 1-June 30 period) that begins after the date of enactment.