To amend the Higher Education Act of 1965 to reduce certain restrictions on the participation of proprietary institutions of higher education in programs of student financial aid.

Amends the Higher Education Act of 1965 to revise a restriction on the participation of proprietary institutions of higher education in student financial aid programs, by treating funds received by an institution from proceeds of loans made to students or parents as funds of such students or parents for purposes of the requirement that at least 15 percent of a proprietary institution's revenues come from sources not derived from Federal student aid programs.