POST Act of 2025

This bill tightens rules for for‑profit colleges that take federal student aid. Schools would have to get at least 15% of their revenue from non‑federal sources, not just federal education funds. It also replaces older rules with this 85/15 standard and clearly defines what money can and cannot be counted toward that 15% .

Key points

• Who is affected: For‑profit colleges, students who use federal aid, and taxpayers.
• What changes:
  • What can count toward the 15%: tuition and fees students pay; certain on‑campus, faculty‑supervised training tied to classes; some job‑training contracts; and payments for programs not funded by federal aid if they’re taught by the school at approved locations.
  • What cannot count: most school‑made loans (except some repayments), most work‑study funds, money the school had to refund, and book/supply charges unless listed as tuition/fees. Schools must also assume federal aid goes to tuition and fees first when doing the math .
  • Special safeguards: Income‑share or other alternative financing plans only count if the terms are clear, show the maximum time and amount a student may pay, and split payments between principal and profit. School “scholarships” only count if funded by outside sources and awarded for need or merit from a restricted account .
  • If a school fails the rule, it loses access to federal aid for at least two fiscal years and must show two straight years of compliance to regain it. The Education Department must also publish a yearly report showing each school’s mix of federal and other revenue.
• When: The changes start in the second full financial‑aid award year after it becomes law.