Twenty-seven for-profit colleges last year exceeded the cap on the share of their revenue that can come from federal student loans and grants, according to annual datareleased Friday by the U.S. Department of Education.
The colleges violated the federal threshold known as the "90/10 rule," which prohibits for-profit colleges from deriving more than 90 percent of their operating revenue from federal student aid money. Colleges that hit the threshold for two years in a row risk losing their eligibility for such funds.
Only one of the 27 colleges announced that failed the metric last year had also failed the previous year. That college, Baton Rouge College, would have been kicked out of the federal student aid program had it not already lost eligibility because its accreditation was revoked.
This year's 90/10 rule data comes as for-profit colleges and their critics are eyeing changes to the requirement in the upcoming reauthorization of the Higher Education Act.
Read more at Inside Higher Ed: https://www.insidehighered.com/news/2014/10/13/more-profit-colleges-would-fail-9010-rule-if-veterans-benefits-are-included-analysis