POST Act of 2024 Protecting Our Students and Taxpayers Act of 2024
The bill seeks to enhance transparency in the financial operations of proprietary institutions by implementing stricter regulations concerning their revenue sources. By enforcing the proposed 85/15 rule, which mandates that a minimum of 15% of revenues come from sources other than federal education funds, the bill aims to ensure that these institutions operate with a more balanced and diversified financial base. This is intended to safeguard students from potential financial burdens arising from institutions that may not uphold educational quality but are primarily focused on profit.
SB4701, titled the 'Protecting Our Students and Taxpayers Act of 2024,' proposes amendments to the Higher Education Act of 1965 with the primary goal of protecting students and taxpayers from the financial practices of proprietary institutions of higher education. The bill specifically addresses revenue generation by requiring these institutions to derive at least 15% of their revenue from non-Federal education assistance sources. This was introduced in response to ongoing concerns regarding the financial sustainability and integrity of proprietary institutions that heavily rely on federal funds.
Despite its protective intentions, SB4701 has faced criticism and concerns from various stakeholders. Opponents argue that restricting funding sources may severely limit the operational capacity of these institutions, potentially leading to reduced educational opportunities for students, particularly those in less affluent areas. Additionally, there are apprehensions regarding the bill’s implementation and its potential impact on established programs that are currently dependent on federal funding, complicating the transition to compliance with the new requirements.