Biden-Harris Administration Finalizes New Higher-Education Regulations: Changes to the 90/10 Rule, Prison Education Programs and College Ownership Guidelines

Oct 31, 2022

Reading Time : 2 min

By: Francine E. Friedman, Kerry Mackenzie (Public Policy Specialist)

The 90/10 Rule. The final regulations address provisions in the Higher Education Opportunity Act (HEA, P. L. 110-135) that allowed for-profit colleges to count federal aid dollars outside of the student aid system, including G.I. Bill benefits, towards the 10 percent of revenue they are required to obtain from non-federal sources. The guidelines also address changes to timing and content of for-profit college financial reporting. This set of regulations will go into effect for institutional fiscal years beginning on January 1, 2023.

Prison Education Programs. New regulations allow incarcerated individuals enrolled in qualifying prison education programs to be eligible for Pell Grants effective July 1, 2023. The DOE has also added more sites to its Second Chance Pell Experimental Sites Initiative, allowing incarcerated individuals in almost every state to gain access to higher education. Finally, the DOE announced that incarcerated individuals are eligible for the Office of Federal Student Aid’s (FSA) Fresh Start Program, which is meant to increase the long-term repayment success of borrowers with eligible loans.

Changes in College Ownership. The DOE tightened the process institutions must follow for changes in ownership by updating the definition of “nonprofit” to prevent receipt of improper financial benefits by former college affiliates. It will also require institutions to give 90 days’ notice regarding a change in school ownership to both the Department and students. These regulations will take effect July 1, 2023.

For more information regarding these final rules, please reference the DOE’s press release. For previous coverage of the Biden-Harris administration’s Second Chance Pell Initiative, please visit AG Study Guide’s post on the matter.

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