HIGHER ED-MONETARY AWARD PROG
The implications of SB0093 are significant for both students and for-profit colleges. Institutions that fail to meet the new eligibility requirements will face consequences, including a probationary academic year where they must inform current and prospective students about the risk of losing grant eligibility if they do not comply. If an institution fails to meet these standards for two consecutive academic years, students enrolled will lose their eligibility for Monetary Award Program grants, which could deter students from enrolling in these institutions, especially those that rely heavily on financial aid. Additionally, this bill aims to pressure for-profit institutions to improve their educational offerings and outcomes, aligning them more closely with public institutions.
SB0093, introduced by Senator Jil Tracy, amends the Higher Education Student Assistance Act to establish stricter eligibility criteria for for-profit institutions participating in the Monetary Award Program. The bill mandates that starting in the 2023-2024 academic year, these institutions cannot exceed a 15% national three-year student loan cohort default rate. Furthermore, by the 2024-2025 academic year, they must maintain an 80% student success rate, defined as the percentage of students who complete their program of study or those re-enrolling within four and a half years after entering the institution. These requirements aim to enhance the quality of education and outcomes for students at for-profit institutions.
Some potential points of contention surrounding SB0093 may include concerns from for-profit institutions regarding how these new requirements could affect their enrollment numbers and financial stability. Critics may argue that while the intent of the bill is to protect students, it could inadvertently limit access to higher education for those who choose for-profit pathways, particularly in regions where alternative institutions are limited. Moreover, further questioning about the metrics used to define 'student success' and whether these benchmarks are realistic or equitable across diverse student populations may arise.