Higher Education Grants Now Open to Proprietary Colleges: PROSPER Act

In Education On
- Updated

Curator’s note:

In the new bill reauthorizing the Higher Education Act, called PROSPER, the Republicans are allowing proprietary colleges into all the grant programs once reserved for only public institutions, except for the Minority Serving colleges program

They would eliminate Title III, Part A, and take the money that used to be used for many disadvantaged colleges under Title III and placed it into a new, large apprenticeship program that is open to proprietaries. They have in essence raided the public college funds and will turn a lot of the money over to the proprietaries.  They also change the rules for TRIO programs in ways that hurt current grantees.

Bill Summary – PROSPER Act

On December 1st, H.R. 4508, the Promoting Real Opportunity, Success, and Prosperity through Education Reform (PROSPER) Act was introduced in the U.S. House of Representatives by the chair of the House Committee on Education and the Workforce, Virginia Foxx (R-NC). The bill would reauthorize the federal Higher Education Act.
The following is a summary of several provisions of the bill, highlighting changes from existing law.

Defining ‘Institution of Higher Education’

Under Title I, the bill no longer separates the designation for proprietary institutions. The current law defines proprietary institutions under Section 102, while all public and private non-profit institutions are defined under Section 101. All sectors are now under a new ‘Section 101.’ This will allow proprietaries to qualify for federal funds and grants in instances where they were previously excluded. The new definition does however exclude proprietary institutions from being designated as Minority Serving Institutions under Titles III and V. The definition of ‘Institution of Higher Education’ is further expanded to include non-degree programs that lead to a recognized credential if they can meet certain criteria. Those programs would be eligible to receive Title IV aid, and would remain eligible if they meet repayment rate requirements. This would allow certain ineligible (non accredited) institutions or organizations to have programs that qualify for Title IV if they meet certain conditions and have a written agreement with an eligible institution (including eligible four-year, two-year, or proprietary institutions) to provide educational instruction.

Read full summary from the Association of Community College Trustees

ACCT HEA reauthorization Prosper Act bill summary Dec 2017

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