(1) From 1998 to 2013, enrollment in for-profit 
institutions of higher education increased by 314 
percent, from 498,176 students to 2,064,920 stu-
dents. 
(2) In the 2012–2013 academic year, students 
who enrolled at for-profit institutions of higher edu-
cation received $26,469,028,523 in Federal Pell 
Grants and student loans. 
(3) Eight out of the 10 top recipients of Post- 
9/11 Educational Assistance funds are for-profit in-
stitutions of higher education. These 8 companies 
have received $2,900,000,000 in taxpayer funds to 
enroll veterans from 2009 to 2013. 
(4) An analysis of 15 publicly traded companies 
that operate institutions of higher education shows 
that, on average, such companies spend 28 percent 
of expenditures on advertising, marketing, and re-
cruiting. 
SEC. 2. RESTRICTIONS ON SOURCES OF FUNDS FOR RE-
CRUITING AND MARKETING ACTIVITIES. 
Section 119 of the Higher Education Opportunity 
Act (20 U.S.C. 1011m) is amended— 
(1) in the section heading, by inserting ‘‘AND 
RESTRICTIONS
ON
SOURCES
OF
FUNDS
FOR 
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RECRUITING
AND
MARKETING
ACTIVITIES’’ 
after ‘‘FUNDS’’; 
(2) in subsection (d), by striking ‘‘subsections 
(a) through (c)’’ and inserting ‘‘subsections (a), (b), 
(c), and (e)’’; 
(3) by redesignating subsection (e) as sub-
section (f); and 
(4) by inserting after subsection (d) the fol-
lowing: 
‘‘(e) RESTRICTIONS ON SOURCES OF FUNDS FOR RE-
CRUITING AND MARKETING ACTIVITIES.— 
‘‘(1) IN
GENERAL.—An institution of higher 
education, or other postsecondary educational insti-
tution, may not use revenues derived from Federal 
educational assistance funds for recruiting or mar-
keting activities described in paragraph (2). 
‘‘(2) COVERED
ACTIVITIES.—Except as pro-
vided in paragraph (3), the recruiting and marketing 
activities subject to paragraph (1) shall include the 
following: 
‘‘(A) Advertising and promotion activities, 
including paid announcements in newspapers, 
magazines, radio, television, billboards, elec-
tronic media, naming rights, or any other public 
medium of communication, including paying for 
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displays or promotions at job fairs, military in-
stallations, or college recruiting events. 
‘‘(B) Efforts to identify and attract pro-
spective students, either directly or through a 
contractor or other third party, including con-
tact concerning a prospective student’s potential 
enrollment or application for grant, loan, or 
work assistance under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et 
seq.) or participation in preadmission or advis-
ing activities, including— 
‘‘(i) paying employees responsible for 
overseeing enrollment and for contacting 
potential students in-person, by phone, by 
email, or by other internet communications 
regarding enrollment; and 
‘‘(ii) soliciting an individual to provide 
contact information to an institution of 
higher education, including websites estab-
lished for such purpose and funds paid to 
third parties for such purpose. 
‘‘(C) Such other activities as the Secretary 
of Education may prescribe, including paying 
for promotion or sponsorship of education or 
military-related associations. 
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‘‘(3) EXCEPTIONS.—Any activity that is re-
quired as a condition of receipt of funds by an insti-
tution under title IV of the Higher Education Act of 
1965 (20 U.S.C. 1070 et seq.), is specifically author-
ized under such title, or is otherwise specified by the 
Secretary of Education shall not be considered to be 
a covered activity under paragraph (2). 
‘‘(4) 
FEDERAL
EDUCATIONAL
ASSISTANCE 
FUNDS.—In this subsection, the term ‘Federal edu-
cational assistance funds’ means funds provided di-
rectly to an institution or to a student attending 
such institution under any of the following provi-
sions of law: 
‘‘(A) Title IV of the Higher Education Act 
of 1965 (20 U.S.C. 1070 et seq.). 
‘‘(B) Chapter 30, 31, 32, 33, 34, or 35 of 
title 38, United States Code. 
‘‘(C) Chapter 101, 105, 106A, 1606, 1607, 
or 1608 of title 10, United States Code. 
‘‘(D) Section 1784a, 2005, or 2007 of title 
10, United States Code. 
‘‘(E) Title I of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3111 et seq.). 
‘‘(F) The Adult Education and Family Lit-
eracy Act (29 U.S.C. 3271 et seq.). 
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‘‘(5) RULE
OF
CONSTRUCTION.—Nothing in 
this section shall be construed as a limitation on the 
use by an institution of revenues derived from 
sources other than Federal educational assistance 
funds. 
‘‘(6) REPORTING.—Each institution of higher 
education, or other postsecondary educational insti-
tution, that receives revenues derived from Federal 
educational assistance funds shall report annually to 
the Secretary and to Congress the institution’s ex-
penditures on advertising, marketing, and recruit-
ing.’’. 
Æ 
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