POST Act of 2025

This proposal changes how for‑profit colleges qualify for federal student aid. To keep access to federal aid, these schools would need to get at least 15% of their revenue from non‑federal sources (like students paying out of pocket or legitimate outside payments), not from federal education assistance funds. It also sets clear rules for what counts as “revenue,” including using cash accounting, limiting how schools count in‑house loans and income‑share agreements, and excluding certain federal funds and book/supply charges from the calculation. If a school misses the 15% requirement, it would lose eligibility for at least two full fiscal years and must show two years of full compliance to regain it. The Education Department would publish yearly reports showing each school’s share of federal vs. other revenue. These changes would start in the second full “award year” after the law takes effect.

Key points:

• Who is affected: For‑profit (proprietary) colleges and the students who attend them.
• What changes: Schools must show at least 15% of revenue from non‑federal sources; strict rules on counting revenue (cash basis, limits on in‑house loans and income‑share agreements, and certain exclusions); annual public reporting.
• What happens if schools don’t comply: Loss of eligibility for federal aid for at least two fiscal years; two compliant years required to regain eligibility.
• When it starts: The second full award year after the law is enacted.