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Rational Choice and For-Profit Regulation: Understanding the 90/10 Rule
Mon, April 11, 4:30 to 6:00pm, Marriott Marquis, Floor: Level Four, Independence Salon FAbstract
The 90/10 rule is a federal statute that dictates a maximum of 90 percent of a Title-IV-eligible proprietary school’s revenue can come from Title IV federal student aid. The author conducts a meta-interpretation analysis of the current literature using a rational choice framework. The author's findings suggest the 90/10 rule to be ineffective at achieving its stated goals of crowding out low-quality for-profit colleges.