Sen. Tom Carper, D-Delaware, along with colleagues Sens. Richard Durbin, D-Illinois; Richard Blumenthal, D-Connecticut; Patty Murray, D-Washington; and Jon Tester, D-Montana, reintroduced on Nov. 9 the Military and Veterans Education Protection Act, legislation that would close a loophole that allows for-profit schools to avoid having to secure at least 10 percent of their revenue from non-federal sources.
More than two decades ago, President George H.W. Bush signed a bipartisan law that limited how much federal funding for-profit schools may receive from taxpayers. Now called the 90/10 rule, this limit requires for-profit schools to obtain at least 10 percent of their revenues from non-federal sources. However, a loophole in the law excludes Department of Veterans Affairs and Department of Defense education funds, like the Post-9/11 GI Bill and Tuition Assistance, from being counted as federal funds. Some for-profit schools exploit this 90/10 loophole by using aggressive recruitment practices and deceptive marketing tools to enroll servicemembers, veterans and other GI Bill beneficiaries. The Military and Veterans Education Protection Act would close the 90/10 loophole by counting VA and DOD funds as federal dollars.
“While not all for-profit schools are bad actors, one veteran misled or mistreated by a for-profit school is one veteran too many,” Carper said. “Unfortunately, too many for-profit schools are taking advantage of the 90/10 loophole and exploiting our veterans and service members for their generous education benefits. Meanwhile, schools like ITT Tech and Corinthian Colleges, which together received over $1 billion in Post-9/11 GI Bill benefits, went bankrupt and closed their doors for good, leaving taxpayers and thousands of veterans in the lurch. Closing the 90/10 loophole and counting G.I. Bill dollars as federal dollars, which they are, is a common-sense fix that will help us improve educational outcomes for veterans and protect taxpayers.”
Organizations supporting the Military and Veterans Education Protection Act include The American Legion, Veterans of Foreign Wars, Student Veterans of America, Iraq and Afghanistan Veterans of America, Vietnam Veterans of America, Paralyzed Veterans of America, Veterans Education Success, Tragedy Assistance Program for Survivors, Military Order of the Purple Heart, Military Officers Association of America, Blue Star Families, Military Child Education Coalition, Veterans for Common Sense, Non Commissioned Officers Association, VetsFirst, VetJobs, High Ground Veterans Advocacy, AMVETS, Wounded Warrior Project, The Retired Enlisted Association, Got Your Six, National Guard Association of the United States, Association of the United States Navy, Naval Enlisted Reserve Association, Non Commissioned Officers Association, National Military Family Association, Swords to Plowshares, Air Force Association and the Air Force Sergeants Association.