Background for 90-10 Report by Revenue Source

The purpose of the 90/10 calculation is to determine the percentage of revenue received from Federal Student Aid (FSA or Title IV) funds. These funds are calculated on a student-by-student basis up to eligible charges, assessed for Eligible Programs and certain qualifying non-eligible programs. The funds are determined by an attribute on the Financial Aid Program Version to identify these programs. The 90/10 rule states that institutions remain eligible for Title IV funds if the percentage of revenue from Title IV funds is 90% at most AND at least 10% of revenue received comes from other non-Title IV funds.

Determining Revenue

The 90/10 calculation includes three categories of revenue received during the institution's fiscal year (reporting period) and used to satisfy eligible charges defined above. They are payments from:

  • Non-Federal Resources

  • FSA Funds

  • Other Receipts sources (such as cash payments, private educational loans, etc.)

The 90/10 regulation states that Title IV must be included in the calculation regardless of whether the funds are credited to the student’s account or paid directly to the student to the extent that charges exist and have not been satisfied with funds received from a non-federal resource such as a state grant.

Basic example of a 90/10 calculation

  • The student has been billed $8500 in eligible institutional charges.

  • The student received:

    • $4000 in Non-Federal Resources funds
    • $3500 in Title IV funds
    • $1200 in Other Receipts funds

In this scenario, the 90/10 calculation is as follows:

  • The denominator of the calculation is the total amount of funds used to satisfy the total institutional charges. The amount is limited by the eligible charges.

    • $4000 is used to pay for institutional charges.
    • Next, $3500 is used to pay for the remaining institutional charges.
    • Although $1200 in Other Receipts funds are available, only $1000 of institutional charges are left. Therefore, only $1000 out of $1200 is used.

    As a result, the denominator of this calculation is $8500.

  • The numerator of the calculation is the Title IV portion that is used to satisfy institutional charges. In this case, the numerator is $3500.

    Revenue %:

    ($3500 Title IV / $8500 total funds used to pay for eligible charges) * 100 = 41.17%

You can choose to include this detailed calculation for each student in the report or choose to see only the summary calculation which has a revenue percentage calculation based on data from all students included in the reporting period.

Reporting Changes Effective 2023 and Expected Results

Congress passed a law requiring institutions to include all non-Title IV Federal education assistance funds on the 90% side for reporting periods that start with January 1st, 2023. This means non-Title IV Federal education assistance funds must be included in 90/10 numerator calculations along with Title IV funds.

Using the previous example, if $500 (out of $1000 from the Other Receipts fund used to pay for an eligible charge) came from a non-Title IV Federal education assistance fund source, that $500 is included in the numerator of the calculation along with the Title IV funds which will provide a different revenue %.

Revenue %:

($4000 Title IV and non-Title IV federal education funds / $8500 total funds used to pay for eligible charges) * 100 = 47.05%

Additionally, there are scenarios where a portion of the non-Title IV Federal education assistance fund is from a federal source and the other portion is from a non-federal source (federal and non-federal funds are commingled).

For the current period’s calculation (i.e., 2023 and later), if a fund source is configured as a non-Title IV Federal education assistance fund and is

  • A commingled fund source, the full payment amount (capped by outstanding eligible charges) is included in the denominator of the 90/10 calculations. However, only the federal portion of the payment from the fund source is included in the numerator of the 90/10 calculations. The non-federal portion of a commingled fund source is reported in the first category of “Funds from Other Non-Federal Resources”.

  • NOT a commingled fund source, the payment amount from the fund source (capped by outstanding eligible charges) is included in the denominator as well as the numerator of the 90/10 calculations.

For a prior period calculation (calculation of prior year carryover charges and credit balance), the full payment amount of non-title IV Federal education assistance funds is used in the calculation regardless of whether the fund source is a commingled fund source.

Anthology Student provides institutions with an option to exclude a fund source from the 90/10 calculation entirely in situations when students receive funds that should not be included in 90/10 calculations at all. An example is the CARES fund provided by the federal government to assist students financially due to the COVID-19 pandemic. These funds should not be included in 90/10 calculations.

For details about the 90/10 Report Configuration options on fund sources, see Configure Fund Sources.

Stipends as Adjustments to Revenue

Stipends in the 90/10 calculation are calculated in the similar way as refunds calculation, except stipends to Title IV funds. If an institution grants stipends money to a student from a fund source that is considered to be an Other Receipt or Non-Federal Resource, that amount is excluded from the revenue reported for that fund source. However, the 90/10 presumption makes stipends irrelevant for FSA funds except for the stipends being the result of a Title IV Credit balance (which is always excluded from the 90/10 calculation).

The 90/10 calculation (for the current period or prior period) in general must apply funds from non-commingled non-Title IV Federal funds first before applying funds from commingled non-title IV Federal funds.

  • For the current period’s calculation (i.e., 2023 and later), similar to stipends from Title IV funds, stipends for non-Title IV Federal and non-commingled fund sources must be excluded from the 90/10 calculation and must not appear in the Refunds/Revenue Adjustments column in the report. For stipends against a commingled fund source, stipend amounts up to the maximum federal portion will be excluded when calculating the net payment amount available for that fund source in the “Funds from non-Title IV Federal Sources” category. Any remaining stipend amount (non-federal amount) is included in the calculation of the net payment available for that fund source in the “Funds from Other non-Federal Resources” category.

  • For the prior period’s calculation, stipends for non-Title IV Federal fund sources must be included in the calculation when calculating the net amount received in the prior period. For non-Title IV Federal commingled funds, the net payment amount is attributed between the non-federal category and the federal category based on the fund source configuration.

Adjustments to Revenue Received in the Prior Year

Adjustments in the current year to revenue received that were included in the 90/10 calculation in a previous year are not considered in the 90/10 calculation for the current year. However, this limitation does not apply to Title IV Funds refunded in the current year as a result of a Return of Title IV Calculation defined in Part 668.22 even if the refund is to Title IV revenue received in the previous year. Additionally, it has been observed that some institutions give stipends to students when the funds have not even been posted to the student’s account. Adjustments should never be included in the 90/10 calculation unless the source of that stipend is being counted.

Refunds/Revenue Adjustments

Revenue adjustments, including revenue that exceeds eligible charges, are recorded under the Refunds/Revenue Adjustments column. Any revenue adjustments including refunds, Supplemental Educational Opportunity Grant (SEOG) matching, and revenue that exceeds eligible charges are included. The amount reported in the Refunds/Revenue Adjustments column is the difference between the Payments column and the Total column for the payment being reported. For non-Title IV Federal funds, refunds against a commingled fund source are attributed between the non-federal category and the federal category based on the fund source configuration.

Title IV Credit Balances

Under the Cash Basis of Accounting, the revenue is counted for the year in which it was received. Title IV Credit balances are excluded as revenue. However, if in a subsequent year, charges are posted that eliminate the prior year's Title IV Credit Balance, the revenue is counted for that year in which the charges were assessed, not for the year in which the revenue was received. Based on an extremely literal interpretation of the principles underlying the cash basis of accounting, it can be interpreted that the revenue in this case cannot be included in either year. According to the Department of Education, this extremely literal interpretation is an impermissible interpretation of the principles governing the cash basis of accounting since it ignores the context of the 90/10 rule and produces an absurd result where the funds would never be counted.

Application of Funds

The impact of the 90/10 presumption and the exclusion of that presumption for revenue from non-federal resources means that regardless of the order that transactions occur on the student’s account, the revenue is counted in the formula based on the category to which the revenue belongs. In other words, revenues from Non-Federal Resources are counted first, then FSA funds are second, then revenue from the third category Funds from non-Title IV Federal Sources, and then revenue from the last category Other Receipts.

90/10 Calculation

Non-Federal Resources

The calculation first considers the revenue from Non-Federal Resources and uses the information to satisfy eligible charges including:

  • State Grants

  • Grants from private sources

  • Job training

  • Institutional scholarships that count toward the 10% revenue requirement

  • Other Non-Federal Resource attribute may be available on the fund source code. For additional information, see Fund Sources.

Title IV Fund Sources

After considering the payments from Non-Federal Resources if there are still unsatisfied charges, the calculation considers revenue from payments received from Title IV fund sources. Revenue from Title IV funds includes PELL, SEOG (Exclude Institutional Match), TEACH, and Direct Loans. Federal Work-Study (FWS) is not included in this category.

Other Receipts

If there is still a remaining balance of unpaid eligible charges, then include revenue from Other Receipts, revenue derived from funds that are not Non-Federal Resources or Title IV. Revenue received from Student Payments, Private Educational Loans are limited.

Amount from School Activities Revenue include Funds received by the institution for academically related activities. These are funds that an institution may count in the denominator of the calculation (not on a student-by-student basis) when the institution collects money for academically related activities. For example, a culinary institution can offer food cooked by students, studying to be chefs, if this activity is required as part of the program and supervised by an instructor. The Include as School Activities Revenue in 90/10 option on the transaction code must be selected. This revenue amount is entered as miscellaneous receipts and is not reported for individual students but rather as a separate revenue category in the report’s summary. There is a configuration on the Transaction Code to identify this revenue type of revenue. For additional information, see Configure Transaction Code.

Calculate and report for Eligible Programs and Non-Eligible Programs

To calculate 90/10 percentage for students with both a Title IV degree program and a non-Title IV Non-Degree Seeking (NDS) program during the 90/10 report audit period, the denominator of the non-Title IV Non-Degree Seeking program(s) is calculated separately and then correctly combined with the denominator of the Title IV program(s) to correctly calculate the 90/10 Revenue Percentage for the student.

90‑10 Calculation Definition
90‑10 denominator Includes payments received during the reporting year used to satisfy eligible charges. The amount is capped by those eligible charges. The denominator can also include prior year amounts that were credit balances in the prior year and are now counted in the current year when the charges were posted.
90/10 numerator Includes the amount of Title IV payments (revenue) reported in the denominator.

All revenue calculated in the above information is included in the denominator of the calculation. The portion of the denominator that is derived from FSA funds is included in the numerator.

Calculate and report for Eligible Programs and Non-Eligible Programs under the 2023 Rules

For students who are enrolled in non-degree seeking (non-Title IV eligible) programs and received non-Title IV Federal funds, the same requirements above are applied. As a result, these students who always had 0 revenue % under the old rules (since their programs are non-Title IV eligible) will now have non-zero revenue percentages under the new rules.

For students who are enrolled in both Title IV eligible programs and non-Title IV eligible programs, the 90/10 calculation:

  1. Continues to calculate the denominator for Title IV eligible programs and denominator for non-Title IV eligible programs separately and adds these denominators together to obtain the overall denominator for the student

  2. Adds the numerator for Title IV eligible programs with the numerator for the non-Title IV eligible programs to obtain the overall numerator for the student

  3. Calculates the revenue % for the student based on the overall numerator and the overall denominator for the student

Note: Title IV (eligible) and non-Title IV (non-eligible) programs are identified by the Program TypeClosed The type of programs available at the campus - that is either degree or non-degree. If the campus provides non-degree programs (NDS), Non-Degree is displayed. If the campus does not allow NDS enrollments, Degree is displayed, by default.

  • Title IV programs are those with Program Type = Degree

  • Non-Title IV programs are those with Program Type = Non-Degree and FA Program Version configured to "Yes" for Non-TIV Program Revenue in 90/10 CalcClosed If you selected No for Title IV Eligible, Anthology Student enables this list so that you can specify whether or not the non-Title IV program version still qualifies to have its revenue included in 90/10 reporting. Select Yes if the program version qualifies and you want its revenue included. Otherwise, select No.

For more details, see Add an Enrollment and Configure FA Information for Program Versions.

Calculate and report based on enrollment at institution when student enrolled in multiple campuses

When running 90/10 Report by Revenue Source for multiple campuses, the students who are enrolled at multiple campuses no longer have their 90/10 data calculated separately for each campus. The transactions are combined (regardless of whether or not the enrollment has transactions in the reporting period) before calculating individual amounts (carryover charges, eligible charges in the period, payments in each payment category) for 90/10 purposes. All transactions associated with the selected campus(es) from all of the student’s enrollments such as:

  • Students with only one enrollment

  • Students with multiple enrollments at the same campus
    àThe 90/10 logic combines transactions from all enrollments before calculating 90/10 amounts.

  • Students with multiple enrollments at multiple campuses.
    à The 90/10 logic combines all transactions associated with the specified campus(es) from all of the student’s enrollments before calculating 90/10 amounts.

For students who are enrolled in both Title IV and non-Title IV programs, the report calculates the students’ 90/10 data separately for each program type. The hierarchy for application of funds (which funds to apply first satisfy charges) remains the same.

Eligible Institutional Charges

Eligible Charges are identified by enabling the Include in Title IV Institutional Charges option while configuring the Transaction Code. For additional information, see Configure Transaction Code.

Carryover Charges

Calculate the balance of unpaid institutional charges for the student as of the first day of the current reporting period. If this balance is less than 0, then the carryover charge is 0.

  1. Calculate the eligible charges from the beginning of the student’s program until the last day of the previous reporting period.

  2. Subtract all payments used to satisfy the charges in Step 1 for the same period identified above.

If the amount is not 0 or a negative amount it is considered a carryover charge. Amounts that are adjustments such as voided transactions are reduced from the amount to carryover.

Current Year Charges

This amount is the amount of eligible charges for the current year. Adjustments such as voided transactions are reduced from the current year's charges.

Total Available Institutional Charges

This is the sum of the current year charges and the carryover charges as defined above. It is the amount to which the revenue considered is limited in the calculation. Refer to the example mentioned below:

Available Institutional Charges Amount (example) Explanation
Carryover Charges $6,189.74 Carryover charges calculation should include transactions from all enrollments and campuses.
Current Period Eligible Charges $6,065.00 Eligible charges calculation should include eligible charges from all enrollments and campuses.
Total Eligible Charges $12,254.74 The sum of Carryover Charges and Current Year Charges.
Payments $6,000.00 The payments calculation for each bucket should include payments from all enrollments and campuses.
Denominator   The denominator is the payments in the period capped by eligible charges in the period. For this example, the total payments in the period is $6000, therefore, all of the payments are counted in determining the denominator. However, if the total amount of the payments is greater than the eligible charges in the period (for example: $15,000.00), the denominator is capped by the eligible charges, which is $12,254.74 instead.
Numerator $0.00 The numerator is the amount is the Title IV portion out of all the payments. For this example, since all the payments are non-title IV, that's why the numerator is $0. If out of $6,000 payments, some of which is Title IV (for example $2,500), the numerator is $2,500 instead.
Percentage   The percentage is the amount reported in the numerator divided by the amount reported in the denominator. Since in this example none of the revenue was from a Title IV source, both the percentage is 0%.