Intended and Unintended Consequences of For-Profit College Regulation: Examining the 90/10 Rule

Autor/in	Ward, James D.
Titel	Intended and Unintended Consequences of For-Profit College Regulation: Examining the 90/10 Rule
Quelle	In: Journal of Student Financial Aid, 48 (2019) 3, Artikel 4 (21 Seiten) PDF als Volltext kostenfreie Datei Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0884-9153
Schlagwörter	For Profit Colleges; Higher Education; Educational Finance; Federal Regulation; Student Financial Aid; Federal Aid; Educational Legislation; Federal Legislation; Government School Relationship; Tuition; Selective Admission; Educational Equity (Finance); Educational Attainment; School Closing; Accountability + Suchen Sie Ihr Suchwort? Hochschulbildung; Hochschulsystem; Hochschulwesen; Bildungsfonds; Bundeskompetenz; Finanzielle Beihilfe; Studienfinanzierung; Studienförderung; Bildungsrecht; Schulgesetz; Bundesrecht; Unterweisung; Unterricht; Bildungsselektion; Bildungsabschluss; Bildungsgut; School closings; Schule; Schließung; Schließung (von Schulen); Verantwortung
Abstract	The 90/10 rule dictates that no more than 90 percent of institutional revenue at a for-profit college or university (FPCU) can come from Title IV funds. The rule, originally an 85/15 ratio, was introduced in the 1992 amendments to the Higher Education Act and has been debated for 25 years. Proponents argue the rule raises institutional quality by eliminating low-quality institutions from the market, while opponents suggest that the rule creates perverse incentives for FPCUs to exclude high-need students and to raise prices. The author uses propensity score matching to estimate the effects of violating the 90/10 rule and the plausibility of these outcomes. The author provides minimal evidence that FPCUs raise tuition as a result of violating the rule, some evidence that Hispanic students may be excluded, some evidence of an increase in the number of certificates awarded, and strong evidence that violating schools are more likely to close. (As Provided).
Anmerkungen	Center for Economic Education at the University of Louisville. Porter Building, 1905 South 1st Street, Louisville, Ky, 40292. e-mail: jsfa@louisville.edu; Web site: https://ir.library.louisville.edu/jsfa/
Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2024/1/01