spent $3,700,000,000 (23 percent of expenditures) 
on advertising, marketing, and recruitment in fiscal 
year 2009. 
(7) According to documents obtained by the 
Committee on Health, Education, Labor and Pen-
sions of the Senate (referred to in this Act as the 
‘‘HELP Committee’’), 30 companies operating for- 
profit 
institutions 
of 
higher 
education 
spent 
$4,100,000,000 on advertising, marketing, and re-
cruitment in fiscal year 2009. 
(8) An analysis of 8 publicly traded companies 
that operate institutions of higher education shows 
that, on average, they spend 31 percent of expendi-
tures on advertising, marketing, and recruiting. 
(9) Documents obtained by the HELP Com-
mittee reveal that for-profit institutions of higher 
education have created sophisticated marketing 
plans and employed many third parties as well as 
large sales forces specifically tasked with enrolling as 
many students as possible, including veterans, 
servicemembers, and their families. 
(10) In 2010, an undercover investigation by 
the Government Accountability Office documented 
misleading and deceptive recruitment practices at 
each of 15 for-profit institutions of higher education 
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campuses visited. Misleading statements included in-
formation regarding the cost of attendance, transfer-
ability of credits, loan repayment by future employ-
ers, job placement, and likelihood of graduation. 
(11) Documents produced to the HELP Com-
mittee demonstrate that revenue from Federal funds 
is used to pay recruiters, who, at some for-profit in-
stitutions of higher education, are trained to exploit 
emotional vulnerabilities of prospective students to 
meet enrollment thresholds. 
(12) Documents produced to the HELP Com-
mittee demonstrate that revenues from Federal 
funds are used to pay very large sales staff titled 
‘‘enrollment advisors’’, including 8,137, 5,669 and 
3,069 of such individuals at 3 large for-profit com-
panies. 
(13) The number of enrollment advisors at sev-
eral for-profit institutions of higher education exam-
ined by the HELP Committee are very dispropor-
tionate with the number of staff engaged in all stu-
dent support services, including job placement, 
which were 3,737, 2,582 and 2,472 at the same 3 
for-profit companies. 
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SEC. 3. 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 
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: 
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‘‘(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 
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-
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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. 
‘‘(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. 
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