The POST Act of 2024 strengthens federal oversight of for-profit colleges by reinforcing and expanding the "85/15 rule," which requires proprietary institutions to derive at least 15 percent of their revenues from non-federal sources rather than relying heavily on federal student aid. The bill defines what counts as qualifying revenue more strictly, excluding alternative financing arrangements like income share agreements unless they meet specific transparency and disclosure requirements, and clarifying what types of student loans and scholarships can be counted. For-profit colleges that fail to meet the revenue requirement become ineligible for federal aid for at least two years and must demonstrate compliance with all certification requirements for a minimum of two additional years before regaining eligibility. The legislation requires the Department of Education to submit annual reports to Congress beginning July 1, 2026, detailing each proprietary institution's revenue sources and the percentage derived from federal versus non-federal funds. The amendments take effect on July 1, 2025.
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