90/10 Rule

The 90/10 Rule state that for-profit schools may receive no more than 90 percent of revenue from federal programs, but exclude military benefits in that measure; the measure is intended to limit low-quality schools from subsisting on federal aid.

As one Senate HELP Committee report details, in the first two years of the Post-9/11 GI Bill, for-profit colleges received $1.6 billion of the total benefits, or 37 percent, despite serving only 25 percent of those veterans. According to Senator Harkin, the substantial amount of money is a reflection of aggressive recruiting efforts of veterans and servicemembers by institutions trying to skirt the 90/10 Rule. Democrats on the Senate committee have proposed altering the regulations to include military benefits so that institutions are required to count the federal funds toward their efforts to meet the 90/10 rule.