Education Department Restores Fairness for For-Profit Colleges

Submitted by MAGA

Posted 8 hours ago

**Department of Education Reverses Overreach: A Win for For-Profit Colleges**

In a significant policy shift, the Department of Education has moved to correct an overreach that targeted for-profit colleges, a decision that signals progress toward fair treatment in higher education.

Under the new guidance, these institutions can now include revenue from online programs when calculating compliance with the controversial 90/10 rule.

This clarification marks a sharp departure from the previous administration's attempt to impose restrictions that lacked proper rulemaking. The revision restores clarity to the regulation that requires for-profit colleges to derive at least 10% of their revenue from non-federal sources while holding them accountable.


The 90/10 rule, designed to ensure that for-profit institutions demonstrate some private sector viability, has faced criticism for being unevenly applied. While it imposes strict criteria on for-profits, public and nonprofit colleges remain unaccountable for similar reliance on federal funding.

This double standard has left many questioning whether the rule is achieving its intended goals, especially as it perpetuates tuition inflation and market distortions.

The Biden administration had sought to expand the definition of federal revenue under the 90/10 rule without following the legally mandated process, further straining for-profit colleges.

But the new leadership under Secretary Linda McMahon has recognized the need for a fairer and more effective system.

The revised guidance opens the door for affected institutions to retroactively adjust revenue calculations, providing much-needed relief in an increasingly competitive education landscape.

In evaluating the success of educational institutions, the application of the 90/10 rule should extend to all colleges, not just for-profits. A broader accountability framework, such as the proposed institutional risk-sharing model, could encourage all college types to prioritize student outcomes.

While the recent changes by the Department of Education represent a step in the right direction, the need for comprehensive reform in higher education remains urgent.

Students, taxpayers, and the institutions themselves deserve a system that supports transparency and accountability across the board.

This latest correction reinforces the need for policies that promote true educational equity, signaling a commitment to reform that benefits all stakeholders in the higher education system.

Sources:
newsbusters.org
dailysignal.com
theamericanconservative.com












Latest News