For-profit colleges can now count federal student aid as 'non-federal' revenue

The US Education Department changed how for-profit colleges count their revenue. These schools can now count federal student aid as part of the 10% of their revenue that must come from non-federal sources.

For-profit colleges have a rule called 90/10. It means no more than 90% of their revenue can come from federal student aid. This rule was supposed to make sure these schools had to attract some private-paying students, proving their value. This change means they can now count some federal money as if it were private money, making it easier to meet the 90/10 rule without actually attracting more private students.