POST Act of 2025

This bill aims to amend the Higher Education Act of 1965, specifically targeting proprietary institutions of higher education to safeguard students and taxpayers. Its primary objective is to revise the financial accountability standards for these institutions by modifying the existing "90/10 rule" to an "85/15 rule." This change mandates that proprietary schools must obtain a minimum of 15 percent of their total revenue from non-federal sources to remain eligible for federal student aid programs. The bill significantly redefines how both federal and non-federal revenues are calculated. It presumes that all federal education assistance funds disbursed to or on behalf of a student are used for tuition and fees, unless explicitly covered by specific outside grants or institutional scholarships from unaffiliated sources. Furthermore, it imposes stringent conditions on what can be counted as non-federal revenue, generally excluding institutional loans and setting strict criteria for income share agreements or other alternative financing arrangements. Under the new provisions, proprietary institutions failing to meet the 85/15 rule will face a period of ineligibility for at least two institutional fiscal years. To regain eligibility, they must demonstrate compliance for two subsequent fiscal years. The Act also requires the Secretary of Education to submit annual reports to Congress detailing the revenue sources of each proprietary institution receiving federal assistance, ensuring greater transparency and oversight.