Three Democratic lawmakers introduced legislation on Wednesday that would close a loophole allowing for-profit colleges to take in increased amounts of federal money by collecting veterans' tuition, reported The Military Times.
The Military and Veterans Education Protection Act, sponsored by U.S. Senators Tom Carper of Delaware, Dick Durbin of Illinois, and Richard Blumenthal of Connecticut, would put an end to for-profit colleges exploiting a technicality in a rule mandating that they receive at least 10 percent of their revenue from non-federal sources to qualify for student aid. The current federal 90/10 rule does not designate military and veteran educational assistance as federal funds, thus allowing federal revenue beyond the 90 percent to trickle into for-profit institutions.
The proposed legislation would reclassify military education benefits as restricted federal dollars for purposes of education funding.
Similar attempts to change the 90/10 rule have been made in recent years, as for-profit colleges have aggressively marketed to veterans of the Iraq and Afghanistan wars, the Times reported. Sen. Carper put forth similar bills in the previous two congressional sessions, and Democratic presidential candidate Hillary Clinton proposed closing the loophole in a speech as recently as last weekend.
"While not every for-profit college is a bad actor, one veteran mistreated is one veteran too many," Sen. Carper said in a statement. "It doesn't make sense for taxpayers to send veterans to for-profit schools that can be 100 percent subsidized using taxpayers' dollars. Closing the 90/10 loophole is a common-sense approach that demonstrates we're serious about improving education outcomes for our veterans and that we're serious about protecting taxpayers."
Since 2010, 40 percent of Post-9/11 G.I. Bill tuition benefits have gone to the for-profit sector, even as questions continue to be raised about these institutions' graduation, default, and job placement rates, according to a news release.
In addition to and in advance of the proposed bill, a coalition of 10 Democratic senators sent a letter on Monday to U.S. Veterans Affairs (VA) Secretary Bob McDonald petitioning to update the agency's online school comparison tools with a "risk index," specifically looking at recent problems with some for-profit institutions, according to the Times.
The update would rate schools as high-, medium-, or low-risk, based on such factors as credit transfer policies and pending litigation. It also would likely create a political firestorm over how for-profit schools should be labeled, given the divided opinions among lawmakers on their worth.
In a statement, VA officials said McDonald "looks forward to responding to the members after VA has time to consider the issues raised, the potential change in policy, and how such information could be integrated" into the existing GI Bill comparison website.
Related Links
U.S. Senator Tom Carper's Press Release
http://www.carper.senate.gov/public/index.cfm/pressreleases?ID=88090b0d-7e0f-49a1-96e1-163ee0023584
The Military Times
http://www.militarytimes.com/story/veterans/best-for-vets/education/2015/06/23/for-profit-colleges-gibill-problems/29160377/