Does the 90-10 Rule Cause Tuition Increases? (Part 1).

Concerns about the quality of for-profit schools in the early 1990s prompted Congress to pass a rule limiting the share of revenue that proprietary institutions could receive from specific federal student aid programs (Pell Grants, loans, and work-study) to 85 percent. The idea was that these institutions would have to show that private demand for their product existed and that students who attended would have some of their own money at stake, rather than relying only on federal assistance.

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