The Students Not Profits Act of 2026 addresses practices that critics say prioritize enrollment revenue over student welfare at higher education institutions. The bill closes a loophole that allowed colleges to pay third-party recruiters commissions based on student enrollment numbers, a practice the legislation argues creates conflicts of interest and encourages aggressive recruitment. Additionally, the bill establishes strict requirements for for-profit colleges converting to nonprofit status, including federal approval, a five-year transition period where converted institutions remain under for-profit regulations, and asset valuations to ensure fair dealing. The Department of Education must create a new office within one year to monitor nonprofit college governance and prevent the misuse of nonprofit status for private financial gain. Together, these provisions aim to protect student interests by reducing profit-driven enrollment incentives and ensuring that converted institutions operate as genuine nonprofits rather than for-profit entities in disguise.