and acquire other institutions that result in a 
change in ownership. 
(2) These transactions are generally good for 
students, as they promote innovation, drive competi-
tion, and prevent stagnation. 
(3) Changing demographics and evolving higher 
education enrollment patterns may lead to more 
mergers and acquisitions in the future. 
(4) Proprietary institutions that voluntarily 
convert to nonprofit status or are acquired by non-
profit and public entities can have a positive impact 
on students and society. 
(5) The Department of Education has an inter-
est in safeguarding Federal student aid funds and 
therefore should conduct thorough and comprehen-
sive reviews of all changes in ownership involving in-
stitutions of higher education. 
(6) These reviews are necessary to ensure that 
the acquiring entity has the financial and adminis-
trative capacity to manage the target institutions. 
(7) The Department of Education should con-
duct these reviews in a thorough and comprehensive 
manner but should do so as quickly as possible to 
promote the execution of these transactions. 
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(8) As of May 2021, the Department of Edu-
cation had ‘‘very few staff’’ assigned to evaluate 
pretransaction, change of control, and conversion ap-
plications on a full-time basis. 
(9) Consequently, these transactions are proc-
essed by the Department of Education at an ex-
traordinary slow rate of speed, with some institu-
tions waiting up to 5 years before receiving a final 
determination. 
(10) One of the primary challenges in proc-
essing these applications quickly is the lack of fund-
ing to hire enough qualified staff. 
(11) Currently, general taxpayers are bearing 
the cost of reviewing these transactions. 
(12) It is in the interest of institutions and the 
United States to charge a fee for applications involv-
ing changes in ownership at institutions of higher 
education that are submitted to the Department of 
Education. 
(13) In consideration for the fee, the Depart-
ment of Education will be required to guarantee an 
expedited review process for all applicants, absent 
compelling circumstances where good cause exists 
for delay. 
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(14) The Government Accountability Office has 
identified weaknesses in the Department of Edu-
cation’s post-transaction monitoring process, which 
will likewise require additional staff to be hired to 
conduct monitoring. 
(15) Institutions that have converted from pro-
prietary status to nonprofit status and have an on-
going financial relationship with the former owners 
of the institution are at highest risk of entering into 
financial arrangements that result in improper pri-
vate inurement. 
(16) These institutions should be closely mon-
itored for a period after these transactions occur and 
should be required to pay a fee to support the hiring 
of staff to conduct this monitoring. 
(17) The Government Accountability Office has 
likewise found weaknesses in the Internal Revenue 
Service review process for conversion requests and 
the post-transaction monitoring process. 
(18) In order to support a more thorough re-
view of these applications and to conduct moni-
toring, the Department of Education will remit part 
of the fee paid by institutions to the Internal Rev-
enue Service for these purposes. 
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