This bill tightens rules for for-profit colleges that accept federal student aid money. Right now, for-profit schools can receive most of their revenue from federal student loans and grants. This bill changes that by requiring for-profit colleges to get at least 15% of their money from non-federal sources—meaning tuition paid by students themselves, their families, or other non-government funding.

The bill carefully defines what counts as "federal education assistance" and what counts as other revenue. For example, it includes tuition students pay out of pocket, money from job training contracts with the government, and scholarships from outside organizations. However, it excludes certain federal programs and doesn't count books and supplies unless the school lists them as tuition charges. The bill also creates strict rules around alternative financing agreements (like income-share agreements where students pay a percentage of future earnings) to make sure schools aren't hiding federal money through creative payment arrangements.

If a for-profit college fails to meet this 15% requirement in any year, it loses eligibility for federal student aid for at least two years and must prove it's following all the rules again before regaining access. The bill also requires the government to publish yearly reports showing how much money each for-profit college gets from federal aid versus other sources. The changes take effect two years after the law passes, giving schools time to adjust their business models.