The bill would change federal student aid eligibility rules for colleges and career schools. It would make for-profit institutions ineligible for federal student aid and add requirements on student enrollment, course programs, and institutional management. It would also require personal liability for some leaders when a school closure or successful borrower defense claim causes losses, and restrict tuition-based payments to outside recruiters. Colleges seeking nonprofit status would need to meet new standards and receive federal approval. The bill would also establish an office to monitor nonprofit integrity.
Students at affected schools could see changes in whether their school qualifies for federal student aid. Schools would face limits on the share of students enrolled in distance education, students who are incarcerated, and students without a high school diploma or equivalent. Some career programs using federal aid would need to prepare students for gainful employment. The bill does not specify how individual students’ aid would change.
The bill does not provide a cost estimate or specify funding for the new office.
No publicly available information.
No publicly available information.