Harris Introduces PARITY Act to End Double Standard Against Career Schools

WASHINGTON, D.C. — Today, Congressman Mark Harris (NC-08) introduced the Promoting Access and Revenue Integrity Through Institutional Transparency (PARITY) Act, legislation to repeal the 90/10 rule in the Higher Education Act. Under current law, the rule applies only to proprietary institutions and requires them to derive at least 10 percent of their revenue from non-federal sources.

“Washington should not pick winners and losers in higher education,” said Congressman Harris. “Career schools give students the opportunity to gain practical skills, pursue in-demand jobs, and choose the education path that best fits their goals. In North Carolina and across the country, these workforce-focused institutions help prepare students for the jobs our communities depend on. By repealing the outdated 90/10 rule, the PARITY Act ends a double standard that singles out career schools and ensures every institution is treated fairly.”

Specifically, the PARITY Act:

• Repeals Section 487(a)(24) of the Higher Education Act, which requires proprietary institutions to derive at least 10 percent of their revenue from non-federal sources; and
• Repeals Section 487(d), which governs implementation and enforcement of the non-federal revenue requirement.
   

“At a time when college costs are still too high, students deserve more options to pursue the education that best fits their goals. The 90/10 rule is an outdated policy that unfairly limits those choices. Repealing it would expand access to high-quality education and career training so every school is held to the same standards. I applaud Rep. Harris for leading this effort. Congress should follow suit and finally retire this outdated policy,” said House Education and the Workforce Committee Chairman Tim Walberg (MI-05).

“Education is not a one-size-fits-all model. Currently, the 90/10 rule singles out vocational and career schools, while letting other colleges play by a different set of standards. This is wrong and it’s time to level the playing field. Thank you to Rep. Harris for joining me in this bicameral effort,” said Senator Jim Banks (IN). 

BACKGROUND:

• Title IV of the Higher Education Act authorizes federal student aid programs such as Pell Grants and Direct Loans. Institutions seeking to participate in these programs must meet a variety of eligibility requirements.
   
• The 90/10 rule is one of those eligibility requirements, but it applies only to proprietary institutions. Public and nonprofit institutions that also receive federal student aid are exempt.
   
• Through the Working Families Tax Cuts Act, Congress enacted a universal earnings and return-on-investment framework tied to Title IV eligibility that applies across institution types. This outcome-based accountability system makes the 90/10 rule redundant and outdated. In the House-passed version, House Republicans repealed 90/10 completely, but the repeal was not included in the Senate’s version that became law.
   
• Senator Jim Banks (R-IN) is leading the Senate companion bill.
   

The full text of the bill can be found here. 

Read the Daily Signal’s exclusive coverage of the bill here.

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