Jayapal Introduces the Students Not Profits Act

09.24.2026 | News Jayapal Introduces the Students Not Profits Act SEATTLE, W.A. – U.S. Representative Pramila Jayapal (WA-07) introduced the Students Not Profits Act to protect students and taxpayers from corporations and private-equity firms abusing our federal student aid system. “Higher education is inaccessible to Americans in every corner of this country as astronomical student loan debt weighs on millions. Congress must act to protect students from the exploitative practices of for-profit corporate universities that prey on vulnerable students,” said Rep. Jayapal. “The Students Not Profits Act is a major step toward putting an end to the exploitative habits of these institutions that prey on disadvantaged students working to earn their degree.” Research has shown that the for-profit higher education industry continues to fail students. On average, students attending for-profit programs earn no more than if they had not attended college at all, while incurring costs at four times the rate of a public college. For-profit colleges account for only about 13 percent of enrollment but nearly 50 percent of all loan defaults , as well as the vast majority of college closures from 2014-2019. To protect students from this harmful, predatory sector, the Students Not Profits Act would: Ensure taxpayer dollars are going towards providing quality, affordable education for students, not into the coffers of private companies by ending taxpayer subsidies to for-profit colleges; Establish a transparent process for approving the conversion of a for-profit school to a nonprofit school, including requiring institutions to certify that: The institution is a nonprofit, and maintains 501(c)(3) status with the IRS; Assets and services acquired from previous owners of the institution were not acquired for more than their fair value, demonstrated by a third-party appraisal, independent financing of the acquisition or full and open competition in the acquisition process; No member of the board or person with the power to appoint board members receives any economic benefit from the institution; and None of the core functions of the institution are controlled by a for-profit entity. The Students Not Profits Act is sponsored by Jesús G. “Chuy” García (IL-04), Chellie Pingree (ME-01), Ayanna Pressley (MA-07), and Rashida Tlaib (MI-13). The legislation has been endorsed by the American Federation of Teachers, Americans for Financial Reform, The Century Foundation, Debt Collective, and Protect Borrowers. Issues: Arts & Education , Jobs, Labor, & the Economy Share: Facebook Twitter Mail