- New legislation presented in Congress aims to limit the for-profit college industry with new financial regulations, additional record-keeping requirements, and a stronger set of sanctions for violations.
- Business Insider reports the PRO Students Act would require for-profit colleges to get at least 15% of their revenue from sources outside of federal student aid dollars and would prohibit them from using the federal money for recruitment and marketing.
- The legislation would also create a new complaint system for students to file grievances and set aside money for a Student Relief Fund, according to the article.
The for-profit higher education industry continues to be under attack. The latest piece of legislation, introduced by three Democrats, would create a host of new restrictions for-profit colleges may not be able or willing to comply with. Right now, they are only legally required to get 10% of revenue from sources outside of federal student aid. The law initially set the threshold at 15% but has been lower for more than 15 years. This legislation comes in the wake of Corinthian Colleges' abrupt closure of its remaining schools following investigations and lawsuits over recruiting tactics and reported job placement rates.