The bill would change how the Department of Education reviews college ownership changes and conversions of for-profit colleges to public or nonprofit status. It would allow colleges to request a review before a transaction and generally require decisions on complete applications within 90 days. If the Department misses that deadline without finding good cause, the application would be approved. The bill also sets application fees, requires some converted colleges to be monitored for five years, and requires public reports about reviews. The changes would apply to applications submitted on or after January 1, 2026.
Colleges planning an ownership change or conversion would face new application, fee, and reporting rules. A college seeking to convert could not present itself as public or nonprofit until it receives the required federal, accreditor, state, and, when applicable, tax-exempt approvals. The bill does not specify a direct change to student aid eligibility.
Most covered applications would have a fee of 0.15% of the college’s revenue from federal student aid under the Higher Education Act. Conversion applications would have a fee of 0.30%. Each application fee is capped at $120,000. Colleges approved for conversion would generally pay an annual monitoring fee of 0.15% of that revenue, capped at $60,000 per year. Half of conversion application and monitoring fees would go to the Internal Revenue Service for specified review or monitoring work.
The bill’s findings state that college mergers and acquisitions can promote innovation and competition, and that reviews should be thorough but faster. They also say application and monitoring fees would support agency staff and protect federal student aid funds.
No publicly available information.