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ERIC Number: ED582856
Record Type: Non-Journal
Publication Date: 2016
Pages: 121
Abstractor: As Provided
ISBN: 978-1-3398-3600-3
ISSN: EISSN-
The Relationship between 3-Year Cohort Default Rates, Graduation Rates, Student Demographic Characteristics, and 90/10 Status in the Proprietary School Sector
Hill, Justin
ProQuest LLC, Ph.D. Dissertation, The University of the Rockies
Public Law 105-244 of the 1998 Higher Education Act Amendments established that proprietary institutions must derive at least 90% (the "90/10 rule") of their revenue from sources other than federal student aid (Title IV funding). Schools that violate the 90/10 rule for 2 consecutive years lose access to Title IV funding (U.S. Department of Education, 2016a). A descriptive correlational design using logistic regression was used to examine whether certain factors were significant predictors of "90/10 status"--defined as a school either having a "very high 90/10 status" (= 85% 90/10 rate) or a "not very high 90/10 status" (< 85% 90/10 rate). The population included 1,324 proprietary institutions. Three-year cohort default rates were found to be a significant predictor of 90/10 status, with every 1 percentage point increase in default rates increasing a school's odds of having a very high 90/10 status by 6% (odds ratio of 1.06). To a lesser extent, graduation rates were found to be a significant predictor of 90/10 status, with every 1 percentage point increase in graduation rates decreasing a school's odds of having a very high 90/10 status by 1% (odds ratio of 0.99). An increase in the proportion of students enrolled that received Pell Grants was found to increase a school's odds of having a very high 90/10 status (odds ratio of 1.03). Increases in the proportion of African American and Hispanic students were also found to increase a school's odds of having a very high 90/10 status (odds ratio of 1.02 for both). An increase in the proportion of Asian students was found to decrease a school's odds of having a very high 90/10 status (odds ratio of 0.99). The proportion of female students and the proportion of American Indian students were not found to be significant predictors of 90/10 status. The findings suggest that improving 3-year cohort default rates and graduation rates decreases a school's odds of having a very high 90/10 status. The results indicate that the 90/10 rule disincentives proprietary institutions from serving low-income and ethnic minority students. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]
ProQuest LLC. 789 East Eisenhower Parkway, P.O. Box 1346, Ann Arbor, MI 48106. Tel: 800-521-0600; Web site: http://www.proquest.com/en-US/products/dissertations/individuals.shtml
Publication Type: Dissertations/Theses - Doctoral Dissertations
Education Level: Higher Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Laws, Policies, & Programs: Higher Education Act Title IV