Bill Overview
Title: Change of Ownership and Conversion Improvement Act
Description: This bill revises the application and review process for institutions of higher education (IHEs) to change ownership or for a proprietary (i.e., for-profit) IHE to convert to public or other nonprofit status, including by establishing a pretransaction review application and requiring an IHE to pay an administrative fee for such transactions or pretransaction reviews. The Government Accountability Office must report on the implementation of this bill's provisions.
Sponsors: Rep. Keller, Fred [R-PA-12]
Target Audience
Population: Students, staff, faculty, and associated communities of higher education institutions globally
Estimated Size: 40000000
- There are approximately 4,000 degree-granting institutions of higher education in the United States. A significant number of these are for-profit institutions that could be considering conversion to nonprofit status.
- Approximately 587,000 international students attend US institutions, which might experience changes due to shifts in the status of these institutions.
- Students, faculty, and staff at institutions changing from for-profit to nonprofit or public status may be directly impacted by operational changes.
- Prospective students could also be affected if the landscape of available institutions changes with shifts in ownership or status.
Reasoning
- The policy primarily targets for-profit institutions planning to convert to non-profit status. There are currently countless for-profit institutions, with several having recently transitioned to non-profit, showing intent amongst others to do similarly.
- Students and staff at these institutions may experience shifts in tuition fees, financial aid availability, or funding for facilities, impacting their wellbeing and satisfaction.
- For faculty, changes in institutional categorization could affect job security, salary, and operational autonomy.
- A large number of prospective students evaluate institutions based on their status (non-profit vs for-profit), which might change post-conversion, impacting decision-making regarding enrollment.
- International students might be impacted differently, as these changes might affect their visa options and perceived value of the degree.
- Local communities around converted institutions might see job growth or reduction, as well as increases or decreases in local business, thus affecting economic wellbeing.
Simulated Interviews
Student (Phoenix, AZ)
Age: 21 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 15/20
Statement of Opinion:
- I would support the conversion if it allows more financial aid and improves the education standard.
- I'm concerned about how this may affect my tuition fees.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 4 |
Faculty Member (Boston, MA)
Age: 35 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- This policy could bring positive transparency and more job security.
- However, I'm skeptical about the actual execution and potential administrative hurdles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 3 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 2 |
Local Business Owner (San Diego, CA)
Age: 29 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- Changes in institution status could impact student enrollment, which affects my business.
- More stability and trust in these schools can lead to more student flow.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 4 |
International Student (New York, NY)
Age: 19 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- I'm concerned about how this will affect my visa status and the value of my degree.
- Improved standards might ease my transition into the job market.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 2 |
Recent Graduate (Dallas, TX)
Age: 24 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 9/20
Statement of Opinion:
- I hope this leads to more recognition and better job prospects for future graduates.
- The cost of education was high, and I fear for those still enrolled.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Non-profit Administrator (Chicago, IL)
Age: 42 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 6/20
Statement of Opinion:
- This policy will streamline the conversion process, allowing my team to assist more institutions efficiently.
- It might be challenging to allocate resources effectively with my current budget.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Prospective Student (Seattle, WA)
Age: 28 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- If conversions to non-profit status increase, I might have more cost-effective and reputable options.
- I'm cautious about the immediate increases in tuition prior to these changes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 5 |
Academic Advisor (Miami, FL)
Age: 31 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 11/20
Statement of Opinion:
- Better clarity and improved policies would benefit both faculty and students.
- Changing institutional guidelines may create an additional workload initially.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 4 |
State Education Official (Atlanta, GA)
Age: 53 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- An increase in non-profit institutions could mean a better quality of education statewide.
- Ensuring compliance will require additional resources and time.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Parent of a college student (Los Angeles, CA)
Age: 60 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 14/20
Statement of Opinion:
- I'm worried about how these changes will impact my child's education and our finances.
- A switch to non-profit status may enhance the degree's value.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 3 |
Cost Estimates
Year 1: $50000000 (Low: $40000000, High: $60000000)
Year 2: $35000000 (Low: $30000000, High: $40000000)
Year 3: $30000000 (Low: $25000000, High: $35000000)
Year 5: $30000000 (Low: $25000000, High: $35000000)
Year 10: $30000000 (Low: $25000000, High: $35000000)
Year 100: $30000000 (Low: $25000000, High: $35000000)
Key Considerations
- The administrative fee may discourage some for-profit institutions from seeking conversion, possibly limiting the intended regulatory impact.
- Assistance and resources needed for potential staff and operational restructuring during conversions could result in additional indirect costs.
- Public perception of institutional changes may affect student enrollment and institution revenue over time.