College Student Rebate Act of 2012 - Amends the Higher Education Act of 1965 to require proprietary institutions of higher education that participate in title IV (Student Assistance) programs to: (1) spend at least 80% of their revenue each fiscal year on educational and related expenses, or (2) rebate to students the shortfall between what they spend for educational and related expenses and 80% of their revenue.
Directs the Secretary of Education to define "educational and related expenses," but excludes revenue spent for advertising and promotion, recruiting, lobbying, shareholder payments, and excessive administrative costs (including excessive executive compensation).