AB 637

This bill precludes certain private postsecondary schools, primarily for-profit schools, from enrolling Wisconsin students if more than 80 percent of their revenue is derived from federal student aid programs.

Under current law, the Department of Safety and Professional Services regulates certain private postsecondary institutions, including private for-profit colleges (proprietary schools). Proprietary schools must obtain approval from DSPS before operating in this state and are subject to various operational requirements.

Under federal law, to participate in federal student aid programs, a proprietary school must enter into an agreement that it will derive not less than 10 percent of its revenues from sources other than federal education assistance funds. A proprietary school that violates this agreement for two consecutive years is ineligible to receive federal student aid funds for at least two years thereafter.

The bill incorporates into state law a provision similar to the federal provision, but with modification. Under the bill, a proprietary school may not enroll Wisconsin residents if less than 20 percent of the school’s annual revenue is derived from a source other than federal funds in two of the three preceding fiscal years. DSPS must promulgate rules to administer the prohibition.