Ensuring Distance Education Act
Ensuring Distance Education Act
Plain Language Summary
# Ensuring Distance Education Act - Plain Language Summary **What the bill would do:** This bill would change how for-profit colleges count their revenue under federal rules. Specifically, it would allow money earned from online and hybrid distance education programs to count toward meeting the "90/10 rule"—a requirement that for-profit colleges get at least 10% of their revenue from sources other than federal student aid. Currently, the Department of Education doesn't allow distance education revenue to count toward this requirement. **Who it affects:** Primarily for-profit colleges and universities that offer online or hybrid courses.
The change could make it easier for these institutions to meet federal requirements, potentially affecting the federal student loan programs that support their students. **Current status:** The bill (HR 1174) was introduced in the 119th Congress by Representative Burgess Owens (R-Utah) and is currently in committee, meaning it has not yet been voted on by the full House. The bill has not advanced beyond the initial committee stage.
CRS Official Summary
Ensuring Distance Education ActThis bill treats revenue from distance education programs as nonfederal revenue for purposes of the 90/10 rule.Generally, the 90/10 rule requires a for-profit institution of higher education (IHE) to derive at least 10% of its revenue from sources other than federal financial aid. Under current Department of Education regulations, for-profit IHEs are prohibited from including revenue from distance education programs (including hybrid distance education programs) as nonfederal revenue that meets this 10% requirement. The bill removes the prohibition and allows for distance education programs to be counted as nonfederal revenue for purposes of the rule.
Latest Action
Referred to the House Committee on Education and Workforce.