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Lowenthal introduces 90/10 Rule Repeal Act

· Donna Lowenthal · Issue: Education

WASHINGTON, D.C. – U.S. Senator Donna Lowenthal (R-Mississippi) today introduced the 90/10 Rule Repeal Act, legislation to repeal the federal 90/10 rule governing proprietary institutions of higher education and prohibit future administrations from reinstating similar requirements through regulation.

The 90/10 rule requires proprietary colleges to obtain at least 10 percent of their revenue from sources other than federal education assistance in order to remain eligible for federal student aid programs.

Lowenthal’s bill would repeal that statutory requirement, nullify its implementing regulations, and prevent the Department of Education from creating a similar revenue test in the future.

“The federal government should evaluate colleges based on the outcomes they deliver for students, not by imposing arbitrary revenue formulas that limit educational choice,” Lowenthal said. “The 90/10 rule has become a regulatory burden that discourages innovation and treats one sector of higher education differently from every other. If an institution is providing students with a quality education and complying with the law, Washington should not be picking winners and losers.”

The 90/10 Rule Repeal Act is Lowenthal’s latest effort to reduce federal regulatory burdens in higher education while expanding educational opportunities for students across the country.