Month: July 2025
ED Revises Its Interpretation of 90/10 Rule
Kate Lee Carey and Dan Shackelford
On July 7, 2025, ED published an interpretive rule significantly revising its position on how for-profit institutions calculate compliance under the Title IV regulations, specifically the “Non-Federal revenue (90/10)” regulations, commonly known as the “90/10 Rule.” Notably, ED will now permit revenue from distance education programs and unapproved locations to count toward the 10% nonfederal revenue requirement under the Higher Education Act (HEA), provided those programs meet statutory criteria. This stance signifies a meaningful shift from previous guidance and offers immediate regulatory relief for proprietary institutions, which may retroactively apply the new interpretation to their 90/10 calculations for prior fiscal years.
Big Beautiful Bill – Earnings Premium for Nonprofit and Public Universities
Jay Vaughan and Vanessa Agudelo
On July 4, President Donald Trump signed “The Act,” commonly referred to as the “One Big Beautiful Bill,” as part of the budget reconciliation process and, among other changes, amended the Higher Education Act of 1965. While the law includes a number of elements impacting higher education (such as endowment taxes and loan limits), one key change was the creation of the “earnings premium” (EP) metric to assess the effectiveness of degree programs at all universities receiving Title IV funds.