U.S. Senator Mike Enzi, R-Wyo., introduced legislation this week to help ensure that colleges and universities are evaluated using the same standards and regulations.
Currently, for-profit colleges are not allowed to receive more than 90 percent of their revenue from federally funded student aid. If the colleges are not in compliance, they could be ineligible to receive federal student aid.
Enzi’s legislation would apply this “90/10” federal student aid rule to all institutions of higher education.
“The 90/10 rule was created to ensure for-profit colleges are providing a valuable education to their students and not simply relying on money from the federal government to keep them afloat,” Enzi said. “This bill aims to hold all colleges to this standard. We should make sure that all institutions of higher education are fairly held to its requirements and providing that value.”
To combat waste, fraud and abuse of federal student aid programs in for-profit higher education, Congress enacted an 85/15 rule in 1992. In 1998, Congress raised the share of revenues for-profit colleges could receive from federal aid to 90 percent.