“A bill 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 to require such institutions to derive at least 15% of revenues from non-Federal education assistance funds (i.e., the 85/15 rule, from the prior 90/10 rule) to qualify for title IV student aid eligibility. (Proprietary institutions are for-profit postsecondary schools.) The section specifies calculation methods using cash-basis accounting that (1) count revenues from title IV-eligible tuition and fees, supervised student activities, certain Federal job-training contracts, and qualifying non-title IV programs; (2) presume Federal funds pay institutional charges unless offset by unaffiliated grants or qualifying institutional scholarships; and (3) exclude institutional loans except bona fide repayments and alternative financing agreements (e.g., income-share agreements) meeting disclosure and repayment conditions.
This section provides that the amendments made by this Act take effect on the second full award year (i.e., period beginning July 1 and ending June 30) that begins after the date of enactment.