Devry Sets Limit on Revenue from Federal Student Aid

DeVry Education Group, one of the largest operators of for-profit colleges, said Tuesday that it will limit the amount of revenue it receives from federal student aid, including veterans and military tuition assistance, getting in front of a controversial issue as the for-profit industry buckles under economic and regulatory pressure.

For-profit colleges are prohibited by law from receiving more than 90 percent of their operating revenue from federal loans and grants. Many schools sidestep that rule by enrolling men and women who serve in the military because the federal education funding they receive is exempt from the law. Lawmakers have fought to close the loophole in the so-called 90/10 rule and lower the overall threshold to 85 percent, but now DeVry is taking steps in that direction on its own.

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