Senate Democrats Criticize Nonprofit Conversions

A group of Democrats in the U.S. Senate sent a letter to Education Secretary Arne Duncan and Internal Revenue Service Commissioner John Koskinen, urging them to stop for-profit colleges from converting to nonprofit status.

Those colleges, they argue, are looking to evade federal income taxes, gainful employment regulations and the so-called 90/10 rule, which restricts for-profits from receiving more than 90 percent of their operating revenue from federal student loans and grants.