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U.S. House-passed tax bill weakens accountability at for-profit colleges, advocates say

  • The U.S. House of Representatives passed a tax and spending bill last week that includes major changes to education policy and oversight of for-profit colleges.
  • Republican lawmakers pushed the bill to reduce federal spending and offset Trump-era tax cuts, aiming to ease regulations, while Democrats and advocates opposed it for weakening protections.
  • Key provisions repeal the 90/10 rule for for-profit schools, remove 'gainful employment' as a requirement, and roll back borrower defenses and closed school discharge rules enacted under the Biden administration.
  • Advocates warn the bill would make higher education less accessible, increasing debt risks for low-income and first-generation students, with Kyle Southern calling it a rollback of critical student safeguards.
  • The bill is now headed to the Senate, where alterations are anticipated; if passed, it may lessen oversight of for-profit colleges and diminish safeguards for borrowers who have been defrauded across the country.
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mainemorningstar.com broke the news in on Thursday, May 29, 2025.
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