Congress moves to let for-profit colleges live entirely on federal student loans
H.R. 9580 — PARITY Act · Filed by Mark Harris (R-NC) · 3 cosponsors · Introduced Jul 2, 2026 · Referred to committee
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What it does
This bill repeals the '90/10 rule' that currently requires proprietary (for-profit) schools to derive at least 10% of their revenue from non-federal sources—meaning no more than 90% can come from federal student aid. Repealing this rule would allow for-profit schools to become entirely dependent on federal student loans and grants, removing a financial accountability mechanism designed to ensure these schools have skin in the game.
Why we flagged it
The bill's sole operative effect is to remove a regulatory constraint on for-profit schools' revenue composition, allowing them to become entirely dependent on federal student aid without institutional co-investment. This is a direct deregulation of the for-profit higher-education sector.
What the text implies
- Removes institutional financial accountability: for-profit schools will have zero financial stake in student outcomes, eliminating a key incentive to maintain program quality or ensure employability.
- Concentrates default risk on federal government and students: with no non-federal revenue requirement, schools have no buffer against loan defaults and no reason to limit enrollment of high-risk borrowers.
The full analysis lists 4 implications of this text.
Who stands to gain
for-profit education companies; proprietary school operators; education management organizations