POST Act of 2024 Protecting Our Students and Taxpayers Act of 2024
The implementation of HB9004 is expected to significantly impact the operational models of proprietary institutions. By mandating that a portion of their revenue come from private sources, institutions may need to adjust their financial strategies, perhaps increasing tuition or significantly enhancing their recruitment of private funding. This legislation seeks to foster accountability and transparency within these institutions, addressing concerns that students may not receive the promised educational outcomes when institutions depend heavily on student loans rather than serving educational interests.
HB9004, titled the 'Protecting Our Students and Taxpayers Act of 2024', aims to amend the Higher Education Act of 1965 to enhance protections for students and taxpayers concerning proprietary institutions of higher education. The bill's primary focus is to ensure that these institutions derive at least 15% of their revenue from non-federal sources, thereby reducing dependence on federal education funds. This requirement is designed to create a more sustainable financial framework for these institutions while also protecting students from potentially predatory practices that can arise when schools rely heavily on federal funding.
Notable points of contention surrounding HB9004 primarily revolve around the implications of increased regulation on proprietary institutions. Supporters argue that these changes will improve the quality of education and protect students from incurring unsustainable debt. However, opponents might contend that such regulation could limit access to education for certain individuals, particularly those dependent on alternative financing arrangements or federal aid. This tension underscores the broader debate on how best to balance educational accessibility with financial accountability and student protection.