PARITY Act

This legislative proposal seeks to repeal the existing 90/10 rule, which governs proprietary educational institutions under Title IV of the Higher Education Act of 1965. The 90/10 rule currently mandates that proprietary schools derive no more than 90% of their revenue from federal student financial assistance programs, requiring at least 10% from non-federal sources.

By eliminating this provision, the bill would remove a significant financial restriction on these institutions. This change could potentially alter the funding landscape for proprietary schools, allowing them to rely more heavily on federal student aid. The bill specifically amends Section 487 of the Higher Education Act of 1965 by repealing subsection (a)(24) and subsection (d), which contain the details of the 90/10 rule.