Ensuring Distance Education Act
This bill, titled the Ensuring Distance Education Act, would change how proprietary (for-profit) higher education institutions count their revenue for the “90/10 rule.” The 90/10 rule currently requires that at least 10 percent of an institution’s revenue come from non-Federal sources, with the rest coming from federal sources (primarily Title IV student aid). The bill adds language to the Higher Education Act to allow revenue from distance education programs to be counted as non-Federal revenue, even if those programs are offered entirely or partly online and regardless of where the program is carried out. In short, it makes funds paid for distance education programs eligible to help satisfy the non-Federal revenue portion of the 90/10 rule. This could make it easier for proprietary institutions to meet the rule’s requirements if they generate a significant portion of their revenue through distance education.
Key Points
- 1Title and purpose: Named the Ensuring Distance Education Act; aims to adjust the 90/10 rule for proprietary institutions.
- 2Specific statutory change: Amends Section 487(d)(1)(B)(iii) of the Higher Education Act of 1965 to insert language about distance education.
- 3Scope of distance education: The added language covers programs offered in whole or in part through distance education, regardless of where the program is conducted.
- 4Effect on 90/10 rule: Allows non-Federal revenue generated from distance education to be counted toward the non-Federal revenue requirement for proprietary institutions.
- 5Legislative status: Introduced in the House on February 10, 2025 by Representative Owens and referred to the Committee on Education and Workforce; no further actions listed in the provided text.