I 
112TH CONGRESS 
2D SESSION 
H. R. 4390 
To amend the Higher Education Opportunity Act to restrict institutions 
of higher education from using revenues derived from Federal educational 
assistance funds for advertising, marketing, or recruiting purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 18, 2012 
Mr. GRIJALVA introduced the following bill; which was referred to the 
Committee on Education and the Workforce 
A BILL 
To amend the Higher Education Opportunity Act to restrict 
institutions of higher education from using revenues de-
rived from Federal educational assistance funds for ad-
vertising, marketing, or recruiting purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. FINDINGS. 
(a) FINDINGS.—Congress finds the following: 
(1) From 1998 to 2008, enrollment in for-profit 
institutions of higher education increased by 225 
percent, from 553,000 students to 1,800,000 stu-
dents. 
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(2) On average, 86 percent of revenues at 15 
large, publicly traded companies that operate for- 
profit institutions of higher education came from the 
Federal Government through student aid programs. 
(3) In 2009, students who enrolled at for-profit 
institutions 
of 
higher 
education 
received 
$30,000,000,000 in Federal Pell Grants and student 
loans. 
(4) Eight out of the 10 top recipients of Post- 
9/11 Educational Assistance funds are for-profit in-
stitutions of higher education. For-profit colleges re-
ceived 37 percent ($4,400,000,000) of all Post-9/11 
Educational Assistance funds during the 2-year pe-
riod of August 1, 2009 through July 30, 2011. 
(5) Six of the top 10 military tuition assistance 
recipients are for-profit institutions of higher edu-
cation. For-profit colleges received half of all tuition 
assistance 
dollars—$280,000,000 
out 
of 
$563,000,000 spent last year. 
(6) The 15 companies that received 86 percent 
of their revenues from Federal student aid programs 
spent $3,700,000,000 (23 percent of expenditures) 
on advertising, marketing, and recruitment in fiscal 
year 2009. 
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(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 
campuses visited. Misleading statements included in-
formation regarding the cost of attendance, transfer-
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