Congressman Harris Introduces PARITY Act to End 90/10 Rule for Career Schools

Congressman Mark Harris introduced the Promoting Access and Revenue Integrity Through Institutional Transparency (PARITY) Act today. This legislation aims to repeal the 90/10 rule in the Higher Education Act, which mandates proprietary institutions to derive at least 10% of their revenue from non-federal sources, a move intended to ensure fair treatment for all institutions.

Context

The 90/10 rule was established to promote transparency and protect students from institutions that rely heavily on federal funding. Career schools, often for-profit, have been scrutinized for their financial practices and student outcomes. The PARITY Act seeks to address concerns about fairness in funding requirements across different types of educational institutions.

Why it matters

The introduction of the PARITY Act could significantly impact funding for career schools by removing the 90/10 rule. This rule currently requires proprietary institutions to obtain at least 10% of their revenue from non-federal sources, which proponents argue ensures accountability. Repealing this rule may change the financial landscape for these schools and their students.

Implications

If the PARITY Act is enacted, proprietary institutions may experience increased financial flexibility, potentially leading to changes in tuition rates and program offerings. Students may benefit from a wider range of educational options, but there are concerns that it could also lead to less accountability for these institutions. The long-term effects on student outcomes and institutional quality will be closely observed.

What to watch

As the PARITY Act moves through Congress, stakeholders will monitor reactions from educational institutions and advocacy groups. Legislative hearings and debates may reveal differing opinions on the implications of repealing the 90/10 rule. The response from the Department of Education and potential regulatory changes will also be significant.