Bill Details
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This bill would change the rules for for-profit colleges that must get a certain share of their money from non-federal sources under the “90/10 rule.” It would let some money earned from distance learning programs count as non-federal revenue, even if the program is offered partly or fully online. In simple terms, the bill would give these schools more flexibility in how they meet the 90/10 requirement by allowing online program payments to count the same way as other eligible private or non-federal funds.
- Applies to proprietary, or for-profit, institutions of higher education.
- Changes how revenue is counted under the 90/10 rule in the Higher Education Act.
- Allows funds paid for programs offered in whole or in part through distance education to count as non-Federal revenue.
- Would apply no matter where the distance education program is carried out.
Official Summaries
Ensuring Distance Education Act
This bill treats revenue from distance education programs as nonfederal revenue for purposes of the 90/10 rule.
Generally, the 90/10 rule requires a for-profit institution of higher education (IHE) to derive at least 10% of its revenue from sources other than federal financial aid. Under current Department of Education regulations, for-profit IHEs are prohibited from including revenue from distance education programs (including hybrid distance education programs) as nonfederal revenue that meets this 10% requirement. The bill removes the prohibition and allows for distance education programs to be counted as nonfederal revenue for purposes of the rule.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1174 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1174
To amend the Higher Education Act of 1965 to provide that non-Federal
revenue generated through certain distance education programs may be
counted for purposes of the non-Federal revenue requirements applicable
to proprietary institutions of higher education (commonly known as the
``90/10 rule'').
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 10, 2025
Mr. Owens introduced the following bill; which was referred to the
Committee on Education and Workforce
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to provide that non-Federal
revenue generated through certain distance education programs may be
counted for purposes of the non-Federal revenue requirements applicable
to proprietary institutions of higher education (commonly known as the
``90/10 rule'').
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Ensuring Distance Education Act''.
SEC. 2. TREATMENT OF REVENUE FROM CERTAIN DISTANCE EDUCATION PROGRAMS
FOR PURPOSES OF THE 90/10 RULE.
Section 487(d)(1)(B)(iii) of the Higher Education Act of 1965 (20
U.S.C. 1094(d)(1)(B)(iii)) is amended by inserting ``(which may include
funds paid for a program offered in whole or in part through distance
education regardless of the location from which such program is carried
out)'' after ``under this title''.
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