WASHINGTON, D.C. – Monday, Senator Jim Banks (R-Ind.) introduced the Promoting Access and Revenue Integrity Through Institutional Transparency (PARITY) Act. This bill would repeal the 90/10 rule in the Higher Education Act, which only applies to proprietary schools and requires them to derive at least 10 percent of their revenue from non-federal sources.
Senator Jim Banks (R-Ind.) said, “Right now, the rules single out vocational and career schools while letting other colleges play by a different set of standards. That’s not fair when these programs are helping meet critical workforce needs and keeping our economy moving.”
This legislation is supported by the Army Association of America, American Retirees Association, Armed Forces Retiree Association, Veteran Warriors, Korean War Veterans Association, American GI Forum, Palmetto Promise, 60 Plus Association, American Principles Project, Consumer Action for a Strong Economy, Taxpayers Protection Alliance, American Accountability Foundation, National Defense Committee, , Association of the U.S. Navy, Army Aviation Association of America, Vietnam Veterans of America, and Frontiers for Freedom.
Key Provisions of Promoting Access and Revenue Integrity Through Institutional Transparency (PARITY) Act:
- Repeal the 90/10 rule in the Higher Education Act.
Full bill text can be found here.
Read more about the story here.
Background:
With the 90/10 rule, Congress is picking winners and losers in the higher education space. This rule only applies to proprietary colleges, not to nonprofit and public schools.
Through the One Big Beautiful Bill Act, Congress moved to craft and enact a universal earnings/ROI metric that applies across all institutions of all types and directly measures student outcomes, tying earnings to Title IV Federal student aid eligibility. In this context, 90/10 is increasingly a solution in search of a problem—it’s duplicative and out of step with where policy now sits.
