Currently, there exists a law stating that for-profit education organizations that derive over 90 percent of their revenue from federally provided student loans and grants, for more than two years in a row, are not able to receive more of this type of tax-payer generated funding. As overall enrollment in for-profit schools has been dropping, several of the largest organizations including, Apollo Group Inc., operator of the University of Phoenix and Santa Ana, California-based Corinthian Colleges Inc., find themselves desperately in need of such funds yet close to reaching this “90/10” rule. John Lauerman of Bloomberg reports on the position of legislators on this matter and the lobbying undertaken by the for-profit education industry to find a solution.
