Department of Education Modifies 90/10 Rule

Rolling back a previous Biden-era regulation, the Department of Education made a regulatory change allowing for-profit colleges to count revenue from online programs that are ineligible for federal student aid toward their 90/10 rule compliance. The 90/10 rule requires for-profit institutions to derive at least 10% of their revenue from non-federal sources to demonstrate market viability.

The change should not affect most students, but reception to the modification has been split. Some observers have raised concerns about the Department setting a precedent for making substantive changes to regulations without going through the normal rulemaking process. In addition, as the Department itself noted, the prohibition stems from preamble language and was not a deliberative topic during a rulemaking session, leading others to suggest that the change was a procedurally improper expansion of the regulation.

For more information, please contact:
Justin Monk