The PARITY Act would repeal the 90/10 rule, a federal regulation that limits how much revenue for-profit colleges can receive from sources other than federal student aid. Currently, proprietary schools must derive at least 10 percent of their revenue from non-federal sources, meaning no more than 90 percent can come from federal student loans and grants. This bill would remove that requirement entirely, allowing for-profit institutions to depend almost exclusively on federal education funding. The legislation would affect for-profit colleges and universities as well as students attending those institutions, who currently benefit from the rule's requirement that schools maintain some financial stake in student success. No specific funding or implementation timeline is included in the bill text.
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