How Will the American Rescue Act Plan Affect Career Schools?

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The American Rescue Plan Act was signed by President Biden on Wednesday, March 11. Part of the plan contains changes that could soon impact how private career schools are able to treat financial assistance for active military and veterans. Paramount Capital Group is here to step in and provide alternative solutions to student financing should these changes come to fruition. Continue reading to learn about how the recent bill affects you and what we can do to help.

The so-called “90-10 loophole” was a notable topic at the marathon Senate session over the weekend. The 90-10 rule requires that at least 10 percent of an institution’s revenue must come from non-federal sources.

The current rule excludes GI Bill and Pentagon tuition assistance programs from federal revenue, allowing colleges, technical, and career schools to offer programs to service members and veterans without limitation.

 The original House bill was amended Saturday in order to give the Education Department, for-profit colleges, and veterans time to adjust to the new policy, and to allow for potential further bipartisan legislation.

The amendment, sponsored by Senators Tom Carper and Jerry Moran, would postpone the change to allow for a rulemaking process to begin Oct. 1 and delay financial penalties for noncompliance until 2024.

Wondering what to do about alternative tuition financing if the new legislation impacts your funding? Paramount Capital Group offers finance solutions to career and technical schools, including gap loan purchasing and servicing to help schools maintain 90-10 compliance.