Education Dept. Holds Public Hearing on 90/10 Rule
Oct 28, 2021, 11:48 AM
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Agency begins the process of writing new rules to carry out provisions passed by Congress earlier this year that close a loophole in the law affecting military service members and veterans.
The U.S. Education Department held two public hearings this week on regulatory changes to the 90-10 rule, which prohibits for-profit colleges from receiving more than 90 percent of their revenue from Title IV federal student aid programs, Inside Higher Ed reported. The negotiated rulemaking process will carry out provisions passed by Congress earlier this year that close a loophole in the law affecting military service members and veterans.
The American Rescue Plan Act of 2021, signed into law in March, expanded the 90 percent cap on for-profit colleges' funding to include all types of federal funding, including veterans' benefits. Previously, military and veterans' education benefits did not count toward that threshold despite being federal aid. The new provision closes the so-called 90-10 loophole that gives for-profit institutions an incentive to target current and former members of the military in their recruitment, according to veterans’ organizations and advocates.
The negotiated rulemaking committee tasked with carrying out the new limits is expected to convene early next year, with implementing regulations effective January 2023, as mandated by Congress.
Inside Higher Ed
- Financial Aid and FAFSA
- Veterans and Service Members
- 90/10 rule
- education department
- Federal Regulations
- Federal relations
- for-profit colleges
- Negotiated Rulemaking
- Veterans and service members issues