Proposed 'Students Not Profits Act of 2026' Aims to Cut Federal Student Aid to For-Profit Colleges

A new legislative proposal, the 'Students Not Profits Act of 2026,' seeks to remove for-profit colleges from the federal definition of an eligible school, thereby ending their access to Pell Grants and federal student loans. The bill also proposes stricter regulations for for-profit institutions converting to non-profit status, a 50% cap on distance education enrollment, and personal liability for some school owners in cases of closure or fraud.