For-Profit Accountability and Pell Grants in Prisons

Inside Higher Ed

Meghan Brink

July 27, 2022

The Education Department released its latest set of proposed regulations this week, including new standards of accountability for for-profit colleges through a revision to the 90-10 rule, a new process for colleges seeking changes in ownership and codifying Pell Grant eligibility for incarcerated individuals.

The negotiators and the Education Department reached a consensus on both the proposals on 90-10 and Pell Grants for incarcerated students during the negotiated rule-making process, where stakeholders negotiate pending regulatory agenda items with the department.

“This announcement is one important step that the Biden administration is taking as a part of a broader effort to ensure that student debt is affordable and that colleges are held accountable for unaffordable debts,” said Under Secretary James Kvaal.

The much-anticipated proposed rule on income-driven repayment (IDR) is expected to be released in “coming weeks,” according to Kvaal. The IDR proposal was on track to be released alongside Tuesday’s regulatory agenda items, however, the department announced last week that it would now be considered separately.

The proposed regulations will undergo a 30-day public comment period, and if published by Nov. 1, they will go into effect by July 2023. Here’s what the department proposed.

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