POST Act of 2025
Sponsored By: Representative Cohen
Introduced
Summary
An 85/15 non-federal revenue requirement for proprietary colleges. This bill would require proprietary institutions to derive at least 15% of their revenue from non-federal sources and then prescribes detailed rules for how that non-federal revenue is measured, reported, and enforced.
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- Students and borrowers: The bill narrows which funds count as institutional revenue. Student loans generally do not count as revenue except in limited bona fide repayment situations, and scholarships count only if they flow through unaffiliated third parties.
- Proprietary institutions: It forces cash-basis revenue calculations, lists specific included and excluded revenue types, and restricts income-share agreements unless they meet disclosure and structuring rules. Institutions that miss the 15% threshold become ineligible under the statute for at least two institutional fiscal years and must show two years of compliance to regain eligibility.
- Oversight and timing: Institutions must report audited data to Congress on the share and amount of federal versus other revenue starting the third full award year after enactment and then annually by July 1. The new rules take effect in the second full award year after enactment.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 1 costs, 1 mixed.
New 85/15 rule for for‑profit colleges
If enacted, for‑profit colleges would need at least 15% of revenue from non‑Federal sources to qualify for federal student aid. The share would use cash‑basis accounting. Only certain items would count, like tuition for eligible programs, required on‑campus activities, and some non‑Title IV programs that meet strict rules. Federal aid, matching funds, refunds, and most book or equipment charges would not count, and Title IV funds would be presumed to pay tuition first unless replaced by qualifying outside grants or approved school scholarships. Special rules would limit what counts from school loans, school‑funded scholarships, and income‑share or other alternative financing. Changes would start in the second full award year after enactment.
For‑profit schools that fail 85/15 lose aid
If enacted, a for‑profit school that fails the 85/15 test for a year would lose eligibility for at least two fiscal years. To regain access, it would need to meet all certification rules for at least two fiscal years after the year it became ineligible. Students at those schools could lose federal loans and grants during that time.
Sponsors & CoSponsors
Sponsor
Cohen
TN • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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