Repeal of 90/10 Rule Could Reshape For-Profit Aid
If Congress repeals the 90/10 rule, for-profit colleges in North Carolina could rely less on federal aid, and students weighing them should watch the bill.
Updated on Nov. 10, 2026 in Financial Aid
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Should for-profit colleges be exempt from the federal 90/10 funding rule?
Rep. Mark Harris said he will push to pass a bill repealing the 90/10 rule, which limits how much federal aid for-profit colleges can rely on, before Congress adjourns. A Department of Education official estimated repeal would cost about $1.5 billion over 10 years.
Why it matters
The 90/10 rule requires for-profit colleges to draw at least 10% of revenue from non-federal sources, so a repeal would change how much federal student aid those schools can take in. Harris's push comes as Congress nears adjournment with only about 20 legislative days left, and as the incoming Congress may change the bill's prospects.
The 90/10 rule applies only to for-profit colleges, while public and nonprofit colleges are not subject to it. Since 2023, GI Bill and military tuition benefits have counted as federal aid under the rule, and the Department of Education estimates repeal would cost about $1.5 billion over 10 years.
The players
Mark Harris
Republican U.S. Representative from North Carolina and sponsor of the House version of the PARITY Act.
Jim Banks
Republican U.S. Senator from Indiana who filed the Senate version of the PARITY Act.
Veterans Education Success
Advocacy organization that opposed repealing the 90/10 rule when it appeared in the 2025 House tax bill.
The details
The PARITY Act, introduced in the House by Harris on July 2, 2025, would repeal the 90/10 rule, and Sen. Jim Banks, R-Ind., filed a Senate version in April. Harris said he may attach the repeal to the annual defense authorization bill, and he spoke about it during a panel hosted by Consumer Action for a Strong Economy. Harris argued the rule is redundant because the Working Families Tax Cuts Act already ties federal student aid eligibility to student outcomes at all college types. Veterans Education Success opposed repeal when the House included it in its 2025 tax bill version, and the Senate dropped it from the final law.
Timeline
July 2, 2025: Harris introduced the House version of the PARITY Act.
April 2026: Sen. Banks filed the Senate version of the bill.
Nov. 3, 2026: Harris won a second term, according to unofficial returns.
Nov. 9, 2026: Harris said he would push to pass the repeal.
January 2027: Democrats take control of both chambers, and bills that have not passed must be reintroduced.
Education Landscape
The 90/10 rule has been a central fight over for-profit college oversight and federal aid dependence. The current proposal follows the 2025 House tax bill attempt, which the Senate dropped from the final law.
Students considering for-profit colleges in North Carolina should know that the federal aid those schools can receive depends on the 90/10 rule, which could change if the repeal passes. Ask a school's financial-aid office how any change to federal rules would affect your specific program and funding.
The takeaway
The repeal's fate is uncertain, so families weighing for-profit programs should monitor the bill's progress before Congress adjourns. Ask any prospective school's financial-aid office how it currently meets the 90/10 requirement and what it would mean for your aid if the rule changes.
What happens next
Congress has about 20 legislative days before adjournment, and any bill not passed by January must be reintroduced when the new Congress is seated.
Further reading
For background on how federal rules shape aid at these schools, explore our Financial Aid coverage.
Source note: This article includes information reported by Carolina Journal.
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Should for-profit colleges be exempt from the federal 90/10 funding rule?
