Protecting American Students Act

This bill modifies how private colleges calculate a tax on investment income by excluding certain students from the tax threshold calculation. Specifically, it prevents colleges from counting students who don't meet eligibility requirements under the Higher Education Act (20 U.S.C. 1091(a)(5)) when determining if they owe the tax. Private colleges subject to this tax must also report both the pre-exclusion and post-exclusion student counts on their tax returns. The changes apply to tax years beginning after December 31, 2024.