MSCHE Submits Comments to USDE on 90/10 Rule

The Middle States Commission on Higher Education (MSCHE) submitted a written letter from MSCHE President Dr. Heather Perfetti in response to the request by the United States Department of Education for public comments regarding the 90/10 rule.

As announced in the Federal Register: The Department intends to regulate on what is commonly referred to as the 90/10 rule. Section 2013 of the American Rescue Plan Act of 2021 (ARP) amended HEA section 487(a)(24) to require that a proprietary institution derive at least 10 percent of its revenues from sources that are not Federal education assistance funds. Federal education assistance funds are “Federal funds that are disbursed or delivered to or on behalf of a student to be used to attend such institution.” Section 2013(c)(2) of the ARP provides that regulations developed and published on 90/10 by the Department will not be effective until on or after January 1, 2023. Read more

Dr. Perfetti wrote that “MSCHE supports the Department’s intent to include nominees for the committee that represent the interests significantly affected by the proposed regulations and urges that nominees reflect the diversity of the constituencies served by the federal programs included in the 90/10 calculation. The involvement of veterans and military families or their representatives, institutions that may be impacted by the proposed regulatory changes, and institutional accreditors is essential to achieving regulations that support the educational goals of constituencies participating in and benefiting from the higher education monetary benefits to be included within the 90/10 rule.” Read the full letter.

MSCHE membership includes 22 for-profit institutions already impacted by the current 90/10 rule.