This bill would repeal the 90/10 rule for proprietary schools under Title IV of the Higher Education Act, eliminating the requirement that these schools get at least 10% of their revenue from non-federal sources. The change would mainly affect for-profit colleges that rely on federal student aid to pay tuition and operating costs. Supporters say it would give those schools more flexibility; critics say it would weaken a safeguard designed to limit dependence on taxpayer-backed aid.
What This Bill Does
- Repeals the 90/10 rule for proprietary schools under Title IV of the Higher Education Act.
- Removes the requirement that these schools obtain at least 10% of revenue from non-federal sources.
- Applies to for-profit colleges that participate in federal student aid programs.
- Would reduce a federal eligibility test tied to Pell Grants and federal student loans.
Who This Bill Affects
If you are a student considering a for-profit college, this bill could make it easier for that school to keep receiving federal aid even if it depends heavily on Pell Grants and federal loans. That could expand the number of schools able to operate, but it also reduces one of the federal checks meant to discourage low-value programs and high-risk borrowing. For taxpayers and borrowers, the main effect is less protection against schools that are financed almost entirely with federal dollars.
See how this bill affects you — sign in for a personalized analysisWho Supports & Opposes This
- For-profit college operators They argue the 90/10 rule can be an arbitrary funding constraint that limits flexibility and makes it harder for schools to serve adult learners and career-training students. Repeal would let them focus on enrollment and program design without having to satisfy a specific revenue formula.
- Students seeking career training Some students and workforce-oriented advocates may prefer more school options, especially in short-term or specialized programs. They may argue that schools should be judged on outcomes and consumer choice rather than on whether they meet a federal revenue ratio.
- School investors and executives They would benefit from fewer compliance risks tied to federal aid dependence. Removing the rule could stabilize revenue for institutions that rely heavily on Title IV dollars.
- Student advocates They argue the rule helps prevent schools from becoming overly dependent on taxpayer-backed aid while delivering weak educational results. Repeal could make it easier for low-quality institutions to stay open and enroll students who may not receive good value for their money.
- Taxpayer watchdog groups They say the rule is a basic safeguard that limits federal exposure to schools with little private market support. Eliminating it could allow more public money to flow into institutions that cannot attract enough non-federal revenue.
- Community college and nonprofit higher-education advocates They often view the rule as a modest accountability measure that helps distinguish proprietary schools from public and nonprofit institutions. They worry repeal could tilt the market toward schools that are more aggressive about recruiting and financing students with debt.
Key Implications
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““To repeal the 90/10 rule””
This would eliminate the revenue test currently used to limit how dependent proprietary schools can be on federal student aid.
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““as it pertains to proprietary schools””
The change is aimed at for-profit colleges, not public universities or most nonprofit institutions.
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““under title IV of the Higher Education Act of 1965””
Title IV is the main federal student-aid framework, so the bill would affect schools’ access to Pell Grants and federal loans.
Official Source & Bill Facts
BillBoard checks this page against public Congress.gov metadata, then adds plain-English analysis where available.
- Bill
- HR 9580
- Congress
- 119th Congress
- Official title
- To repeal the 90/10 rule as it pertains to proprietary schools under title IV of the Higher Education Act of 1965.
- Policy area
- Education
- Latest action
- Referred to the House Committee on Education and Workforce. (July 2, 2026)
- Last updated
- July 3, 2026
Latest Status
July 2, 2026
Referred to the House Committee on Education and Workforce.
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