In a recent development, the Department of Education under the Trump administration has made notable adjustments to regulations that were initially established during the Biden era. These changes aim to reshape the landscape for for-profit colleges, particularly in how they account for their revenue sources.
Changes to Revenue Calculation for For-Profit Colleges
The newly revised policy allows for-profit educational institutions to include earnings from online courses that do not qualify for federal financial aid in their 90-10 revenue calculations. This adjustment is significant as it alters the accountability framework that mandates that at least 10 percent of a college’s total income must come from non-federal sources.
Concerns Raised by Critics
Critics of this policy shift express concern over the implications of such changes, suggesting that they may undermine the quality of education provided by these institutions. They argue that the Trump administration is circumventing the traditional rule-making process, which typically involves public input and scrutiny, to push through its political agenda.
Potential Risks of Arbitrary Changes
Experts warn that allowing such arbitrary modifications to regulatory measures could set a dangerous precedent. Barmak Nassirian, a representative from a consumer protection organization, highlighted the risks of a government that operates on unilateral decisions rather than established laws. This could lead to further alterations in foundational regulations that govern educational standards.
Support for the Revision
On the other hand, supporters of the revision argue that the changes were made to enhance clarity rather than to fundamentally alter the regulations. Jason Altmire, a leader in the for-profit education sector, stated that the adjustments would enable a more equitable enforcement of the 90-10 rule.
Previous Regulations and Their Impact
Prior to 2023, certain veteran benefits, such as those from the GI Bill, were included in the 10 percent revenue requirement. Critics claimed this loophole encouraged aggressive recruitment of military personnel by for-profit colleges, often at the expense of educational quality.
Reversal of Previous Restrictions
The recent rule change not only permits for-profit colleges to count revenue from online programs but also eliminates the previous restrictions on veteran grant funds. The Trump administration justified this reversal by arguing that the earlier prohibition was not properly established within the regulatory framework.
Debate Over Regulatory Intent
While the administration claims that the changes are intended to foster innovation and competition in higher education, critics maintain that both the regulatory text and the preamble explicitly excluded online programs from being counted as non-federal revenue. This contradiction raises questions about the true intent behind the revisions.
Conclusion: A Shift in Educational Policy
The ongoing debate surrounding the 90-10 rule highlights the complexities of educational policy and the potential consequences of regulatory changes. As the landscape of for-profit education continues to evolve, stakeholders from various sectors will need to remain vigilant in monitoring how these adjustments impact the quality and accessibility of education for students.