S.2107 - Protecting Our Students and Taxpayers Act of 2025; POST Act of 2025 (119th Congress)
Summary
The Protecting Our Students and Taxpayers Act of 2025 (POST Act of 2025) aims to amend the Higher Education Act of 1965, specifically targeting proprietary institutions of higher education. The bill seeks to modify the 85/15 rule, requiring these institutions to derive at least 15% of their revenue from sources other than federal education assistance funds. This is intended to protect students and taxpayers by ensuring that these institutions are not overly reliant on federal funding and are providing genuine educational value.
Expected Effects
The primary effect of this bill would be to increase the financial accountability of proprietary institutions of higher education. Institutions failing to meet the 85/15 rule would face ineligibility for federal funding for a minimum of two fiscal years. This could lead to some institutions closing or altering their business models to comply with the new requirements.
Potential Benefits
- Reduces reliance on federal funds for proprietary institutions.
- Increases accountability and potentially reduces fraud.
- Encourages institutions to seek diverse revenue streams, potentially improving educational quality.
- Protects students from predatory lending practices by institutions.
- May lead to lower tuition costs if institutions become more efficient.
Most Benefited Areas:
Potential Disadvantages
- Could lead to closure of some proprietary institutions, displacing students.
- May increase tuition costs for students if institutions pass on the cost of compliance.
- Could disproportionately affect low-income students who rely on federal aid.
- May create administrative burdens for institutions to comply with the new regulations.
- Potential for unintended consequences if institutions find loopholes to circumvent the rule.
Constitutional Alignment
The bill aligns with the Constitution's general welfare clause (Preamble). Congress has the power to regulate commerce and provide for the general welfare, which includes ensuring that federal funds for education are used responsibly. The bill does not appear to infringe on any specific constitutional rights, such as freedom of speech or religion (First Amendment), or equal protection under the law (Fourteenth Amendment).
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).