The proposal to change the “90/10″ rule would require for-profit colleges to include tuition they receive under the GI Bill, and other federal student-aid sources outside Title IV, in calculating their 90-percent cap on federal dollars. That would close a loophole that for-profit colleges, by targeting veterans as students, have used to stay within the bounds of the rule, critics have said.

The department is also proposing to tighten the rules for institutions that undergo a change in ownership, by requiring that when a for-profit college seeks to become a nonprofit one, its former owner cannot continue to hold a financial stake in it. Such a rule would prevent what some have called sham conversions to nonprofit status, which allow the owners to continue to profit while avoiding the extra accountability that is applied to proprietary colleges.