The Protecting Our Students and Taxpayers Act of 2025 (POST Act of 2025) would revise the Higher Education Act’s rules for proprietary institutions of higher education, especially the long-standing 85/15 revenue test. Under current law, for-profit colleges must derive at least 15 percent of their revenue from non-federal sources to remain eligible for Title IV federal student aid. The bill would replace and expand the existing framework by defining what counts as federal education assistance funds and what counts as non-federal revenue, with detailed rules for tuition, institutional charges, student work-based activities, certain federal job-training contracts, scholarships, loans, and alternative financing arrangements such as income share agreements.
The bill also tightens how proprietary schools may count revenue and would exclude or limit several categories that could otherwise be used to satisfy the 15 percent non-federal threshold. It specifies that federal aid is generally presumed to be used for tuition and institutional charges, restricts treatment of school-made loans and certain financing agreements, and limits when institutional scholarships and non-Title IV program revenue may be counted. Schools that fail the rule for a fiscal year would become ineligible for at least two institutional fiscal years and would have to demonstrate two years of compliance before regaining eligibility. The bill further requires the Secretary of Education to report annually to Congress on the share of each proprietary institution’s revenue coming from federal aid versus other sources.
In addition to changing the 85/15 rule, the bill repeals existing statutory provisions in Section 487 of the Higher Education Act and makes a series of conforming amendments across related sections of the law. These changes would alter the compliance and certification framework for for-profit institutions participating in federal student aid programs, and the amendments would take effect beginning with the second full award year after enactment.
Because there were no committee transcripts or recorded votes provided, the overall sentiment cannot be measured from debate or roll-call history. Based on the bill text and title, the measure appears to be framed as a student- and taxpayer-protection bill aimed at increasing accountability for for-profit colleges and reducing reliance on federal aid. The principal policy tension is likely between supporters who view the bill as a safeguard against abuse of federal student aid and critics who may argue it imposes stricter compliance burdens and could limit institutional flexibility, especially around alternative financing, scholarships, and revenue recognition.
Impact
The bill would substantially amend the Higher Education Act of 1965 by rewriting the proprietary institution eligibility rules tied to the 85/15 revenue test, redefining revenue calculations, and repealing existing related provisions in Section 487. It would affect for-profit colleges, the U.S. Department of Education’s Title IV administration, and students who use federal aid at proprietary institutions, while also creating new annual reporting obligations to Congress.
Sentiment
No votes or committee discussion were provided, so there is no recorded legislative sentiment to summarize from debate or roll-call history. From the bill’s title and structure, it is presented as a consumer-protection and taxpayer-protection measure intended to curb overreliance on federal aid by proprietary institutions and increase transparency and accountability.
Contention
The main points of contention are likely to center on the bill’s stricter revenue-counting rules and its treatment of alternative financing arrangements, institutional loans, scholarships, and non-Title IV programs. Supporters would likely argue these provisions close loopholes and better protect students and taxpayers, while opponents may contend that the bill is overly restrictive, could penalize legitimate school-based financing or training programs, and may make it harder for proprietary institutions to remain eligible for federal aid.
Requires undergraduate students to file degree plan and requires institutions of higher education and certain propriety institutions to develop pathway systems to graduation.
Requires undergraduate students to file degree plan and requires institutions of higher education and certain proprietary institutions to develop pathway systems to graduation.
Establishes process for merger or consolidation of public institution of higher education with other institutions of higher education or certain proprietary institutions; requires executive and legislative approval of merger or consolidation.
Establishes process for merger or consolidation of public institution of higher education with other institutions of higher education or certain proprietary institutions; requires executive and legislative approval of merger or consolidation.
Relating to the issuance of a diploma to a student graduating from a public institution of higher education that has undergone a merger, acquisition, or name change.