Legislative Advocacy Priorities
CECU advocates for policies that treat all institutions and students equitably. We support accountability standards based on student outcome metrics for all programs at all institutions in ways that protect both students and taxpayers. We advocate for increased transparency of outcomes so that prospective students and families can make fully informed decisions about their educational pursuits.
Include Students Attending For-Profit Colleges in Any Increase to the Pell Grant
Every year, Congress increases the maximum Pell Grant by $200-$400 to keep up with inflation to provide low-income students with money to attend college. As part of the Build Back Better Act, Congress proposed providing low-income students at nonprofit and public institutions with a $550 increase in the Pell Grant, but the proposal excluded students attending proprietary institutions from this increase.
The proposal was intended to hurt for-profit colleges by denying students attending those schools the increase in money. In truth, it would have hurt our low-income students the most. This unprecedented exclusion would prohibit approximately 900,000 students who attend for-profit colleges from accessing the expanded Pell Grant, disproportionately hurting low-income, minority, veterans, and single-parent students. The proposal would also adversely impact workforce development for essential workers in high-demand fields. In response, 17 Democratic Representatives sent a letter led by Rep. Al Lawson (D-FL) to House Democratic leadership, urging them to modify the bill.
Additionally, 17 national trade associations signed a letter to include students attending for-profit colleges in the Build Back Better $550 Pell Grant increase. Here is a list of organizations that signed the letter: American Association of Colleges of Nursing, American Medical Technologists, American Traffic Safety Services Association, American Trucking Associations, Associated Skin, Nail, Hair, Bodywork and Massage Professionals, Association of the United States Navy, Aviation Technician Education Council, Beauty Changes Lives, Career Education Colleges and Universities, Choose Aerospace, Inc., Commercial Vehicle Training Association, Enlisted Association of the National Guard of the United States, International SPA Association, National Black Nurses Association, National League of Nursing, Non-Commissioned Officers Association, Professional Beauty Association, Special Operations Association of America, Veterans Education Project.
Unfortunately, House Democratic leadership refused to make substantive changes to the education provisions in the modified bill and did not change the Pell Grant provision before the final House passage. The bill has stalled in the Senate. However, should that bill, or any other bill, move forward with any Pell Grant increases, CECU continues to proactively work with Congress to ensure that all low-income students, including students at for-profit colleges, be included in any increases to the Pell Grant.
Include Students Attending For-Profit Institutions in Expanded Pell Grant to Short Term Programs
The Pell Grant provides low-income students with money to attend college at an eligible institution that fits a student’s educational needs. For-profit colleges have been serving the needs of nontraditional and low-income students for decades with short-term programs that are career focused to equip them with pathways to succeed in the workforce.
Senate and House policymakers have attempted several times, most recently in the America COMPETES Act, to include a provision to expand the Pell Grant program to short-term programs while excluding proprietary institutions and the students they serve. The most recent provision also seeks to end the Direct Loan program for short-term programs above 300 clock hours but less than 600 clock hours and at least 10 weeks long. To be eligible to participate in this program, the program must have a 70 percent completion rate and a 70 percent placement rate (sometimes referred to as the 70/10 rule). The Kaine-Portman Amendment would terminate this loan program 120 days after the Department of Education establishes the Job Training Federal Pell Grant program.
The termination of the short-term Direct Loan program seems to be premised on the mistaken idea that the new Pell Grant program will provide funding to students currently being served by the loan program, obviating the need for the loan program. This would not be the case for students attending proprietary institutions who use the program or for middle-class students who are not eligible for Pell Grants.
We ask that for-profit institutions be included as a part of the short-term Pell Grant Program and that Congress oppose changes to the Direct Loan Program in Conference.
Oppose Appropriations Riders to Change the 90/10 Rule to 85/15
Under the 90/10 rule [20 USC 1094(a)(24)], proprietary institutions of higher education (IHE) must derive at least 10% of their total tuition and fees revenues from non-Title IV sources (or, conversely, no more than 90% of their tuition and fees revenue from Title IV funds) during a fiscal year. The HEA and accompanying regulatory provisions specify how revenues are to be calculated. If an IHE fails to meet the rule’s requirement in a single year, its certification to participate in the Title IV aid programs becomes provisional for two institutional fiscal years. As an example, if an IHE fails to meet the rule’s requirements in two consecutive years, then it loses its eligibility to participate in the Title IV programs for at least two institutional fiscal years. The rationale behind the 90/10 rule is twofold: (1) reducing fraud, waste, and abuse at proprietary IHEs and (2) if a proprietary IHE is of sufficient quality, it should be able to attract a specific percentage of revenues from non-Title IV sources.
Provisions in the American Rescue Plan Act of 2021 (ARP Act) started the process to change the 90/10 rule. Additionally, during the Fiscal Year 2022 Appropriation process, a proposed provision in the House Labor-HHS-Education appropriation bill attempted to adjust the 90/10 rule to 85/15. In contrast to the House bill, which proposed changing the 90/10 rule to 85/15, the Senate Fiscal Year 2022 Appropriation makes no changes to the 90/10 rule. It’s a clear indication that the 90/10 rule is under focus, and policymakers will continue to make efforts to change the 90/10 further if an opportunity presents itself.
The 90/10 rule measures how wealthy students are at a particular institution and makes it harder for institutions serving low-income and minority students to pass that 90/10 rule. Congress recently amended the 90/10 rule to include GI Benefits on the "90" side and the Department of Education is conducting rulemaking to make changes to the rule. We ask Congress to oppose changing the 90/10 rule to 85/15.
Every year, Congress increases the maximum Pell Grant by $200-$400 to keep up with inflation to provide low-income students with money to attend college. As part of the Build Back Better Act, Congress proposed providing low-income students at nonprofit and public institutions with a $550 increase in the Pell Grant, but the proposal excluded students attending proprietary institutions from this increase.
The proposal was intended to hurt for-profit colleges by denying students attending those schools the increase in money. In truth, it would have hurt our low-income students the most. This unprecedented exclusion would prohibit approximately 900,000 students who attend for-profit colleges from accessing the expanded Pell Grant, disproportionately hurting low-income, minority, veterans, and single-parent students. The proposal would also adversely impact workforce development for essential workers in high-demand fields. In response, 17 Democratic Representatives sent a letter led by Rep. Al Lawson (D-FL) to House Democratic leadership, urging them to modify the bill.
Additionally, 17 national trade associations signed a letter to include students attending for-profit colleges in the Build Back Better $550 Pell Grant increase. Here is a list of organizations that signed the letter: American Association of Colleges of Nursing, American Medical Technologists, American Traffic Safety Services Association, American Trucking Associations, Associated Skin, Nail, Hair, Bodywork and Massage Professionals, Association of the United States Navy, Aviation Technician Education Council, Beauty Changes Lives, Career Education Colleges and Universities, Choose Aerospace, Inc., Commercial Vehicle Training Association, Enlisted Association of the National Guard of the United States, International SPA Association, National Black Nurses Association, National League of Nursing, Non-Commissioned Officers Association, Professional Beauty Association, Special Operations Association of America, Veterans Education Project.
Unfortunately, House Democratic leadership refused to make substantive changes to the education provisions in the modified bill and did not change the Pell Grant provision before the final House passage. The bill has stalled in the Senate. However, should that bill, or any other bill, move forward with any Pell Grant increases, CECU continues to proactively work with Congress to ensure that all low-income students, including students at for-profit colleges, be included in any increases to the Pell Grant.
Include Students Attending For-Profit Institutions in Expanded Pell Grant to Short Term Programs
The Pell Grant provides low-income students with money to attend college at an eligible institution that fits a student’s educational needs. For-profit colleges have been serving the needs of nontraditional and low-income students for decades with short-term programs that are career focused to equip them with pathways to succeed in the workforce.
Senate and House policymakers have attempted several times, most recently in the America COMPETES Act, to include a provision to expand the Pell Grant program to short-term programs while excluding proprietary institutions and the students they serve. The most recent provision also seeks to end the Direct Loan program for short-term programs above 300 clock hours but less than 600 clock hours and at least 10 weeks long. To be eligible to participate in this program, the program must have a 70 percent completion rate and a 70 percent placement rate (sometimes referred to as the 70/10 rule). The Kaine-Portman Amendment would terminate this loan program 120 days after the Department of Education establishes the Job Training Federal Pell Grant program.
The termination of the short-term Direct Loan program seems to be premised on the mistaken idea that the new Pell Grant program will provide funding to students currently being served by the loan program, obviating the need for the loan program. This would not be the case for students attending proprietary institutions who use the program or for middle-class students who are not eligible for Pell Grants.
We ask that for-profit institutions be included as a part of the short-term Pell Grant Program and that Congress oppose changes to the Direct Loan Program in Conference.
Oppose Appropriations Riders to Change the 90/10 Rule to 85/15
Under the 90/10 rule [20 USC 1094(a)(24)], proprietary institutions of higher education (IHE) must derive at least 10% of their total tuition and fees revenues from non-Title IV sources (or, conversely, no more than 90% of their tuition and fees revenue from Title IV funds) during a fiscal year. The HEA and accompanying regulatory provisions specify how revenues are to be calculated. If an IHE fails to meet the rule’s requirement in a single year, its certification to participate in the Title IV aid programs becomes provisional for two institutional fiscal years. As an example, if an IHE fails to meet the rule’s requirements in two consecutive years, then it loses its eligibility to participate in the Title IV programs for at least two institutional fiscal years. The rationale behind the 90/10 rule is twofold: (1) reducing fraud, waste, and abuse at proprietary IHEs and (2) if a proprietary IHE is of sufficient quality, it should be able to attract a specific percentage of revenues from non-Title IV sources.
Provisions in the American Rescue Plan Act of 2021 (ARP Act) started the process to change the 90/10 rule. Additionally, during the Fiscal Year 2022 Appropriation process, a proposed provision in the House Labor-HHS-Education appropriation bill attempted to adjust the 90/10 rule to 85/15. In contrast to the House bill, which proposed changing the 90/10 rule to 85/15, the Senate Fiscal Year 2022 Appropriation makes no changes to the 90/10 rule. It’s a clear indication that the 90/10 rule is under focus, and policymakers will continue to make efforts to change the 90/10 further if an opportunity presents itself.
The 90/10 rule measures how wealthy students are at a particular institution and makes it harder for institutions serving low-income and minority students to pass that 90/10 rule. Congress recently amended the 90/10 rule to include GI Benefits on the "90" side and the Department of Education is conducting rulemaking to make changes to the rule. We ask Congress to oppose changing the 90/10 rule to 85/15.