Report: For-profit schools skirting federal law with GI Bill revenue
SAN ANTONIO — An analysis by the U.S. Department of Education released Wednesday found that nearly 200 for-profit schools are skirting federal funding limits by relying heavily on GI Bill tuition funds. The results are reigniting concern from veterans groups and the federal government about targeted recruitment of servicemembers and vets.
In a separate statement Wednesday, 10 advocacy groups called on Congress to close a loophole they said encourages for-profit schools to target students using the Post-9/11 GI Bill — a benefit exempt from Congressional caps limiting federal student aid to 90 percent of revenue.
Known broadly as the 90/10 rule, the restriction was implemented to force for-profit schools to get at least 10 percent of their revenue from students who pay their own tuition.
The Post-9/11 GI Bill pays tuition and fees, along with book and housing stipends, to veterans and troops based on a sliding scale of active-duty service.
The Education Department analyzed Department of Veterans Affairs-provided tuition at for-profit schools to conclude how many would be out of compliance if the loophole were closed and GI Bill funds counted against revenue limits. The June 16 audit looked at fiscal ending dates between Dec. 31, 2014, and June 30, 2015. It identified 17 schools that were out of compliance with current laws. Closing the loophole would increase the number to nearly 200, according to the Education Department.
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