S. 2107 · Where this bill is now
In committee
Introduced in the Senate, Jun 18, 2025
What this bill does
In plain words · AI-written from the official summaryRaises for-profit college revenue from non-federal sources
Right now, for-profit colleges can rely on federal student aid for up to 90% of their revenue, meaning they only need 10% from other sources like tuition paid directly by students or employers. This bill would tighten that requirement, raising the non-federal revenue threshold from 10% to 15%. The bill also spells out exactly how schools must calculate their revenue to follow this new rule, and it creates stricter penalties: schools that don't meet the 15% requirement would lose access to federal student aid programs for at least two years instead of just getting a warning.
How it affects you
If you're a student at a for-profit college considering federal student aid, this could affect your options. Schools that can't meet the higher revenue requirement might close, change their programs, or raise costs to students. The change makes it harder for for-profit colleges to stay afloat on federal aid alone, which could mean fewer choices for some students or schools operating differently.
Read the official summary (Introduced in Senate, Jun 18, 2025)
Protecting Our Students and Taxpayers Act of 2025 or the POST Act of 2025
This bill requires proprietary (i.e., for-profit) institutions of higher education (IHEs) to derive a larger portion of their revenues from nonfederal sources by replacing the existing 90/10 rule with an 85/15 rule.
Specifically, the bill requires a proprietary IHE to derive at least 15% of its revenue from sources other than federal education assistance funds. (Currently, a proprietary IHE must derive at least 10% of its revenue from sources other than federal education assistance funds.)
Additionally, the bill specifies how revenue must be calculated for purposes of the 85/15 rule. (Currently, the Higher Education Act of 1965 and accompanying regulatory provisions specify how revenue must be calculated for purposes of the 90/10 rule.)
Finally, the bill makes a proprietary IHE that fails to meet the 85/15 rule's requirements for a fiscal year ineligible to participate in federal student aid programs for at least two institutional fiscal years. However, the proprietary IHE may regain eligibility if it complies with all eligibility and certification requirements for at least two institutional fiscal years. (Currently, if a proprietary IHE fails to meet the 90/10 rule's requirement in a single year, then its certification to participate in federal student aid programs becomes provisional for two institutional fiscal years. Further, if a proprietary IHE fails to meet the rule's requirements in two consecutive years, then it loses its eligibility to participate in these programs for at least two institutional fiscal years.)
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 2107
A BILL
POST Act of 2025
Sponsor: Sen. Richard J. Durbin (D-IL) · Introduced Jun 18, 2025 · Education · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Jun 18, 2025: “Read twice and referred to the Committee on Health, Education, Labor, and Pensions.”