Noteboom The Law Firm

For-Profit Universities Making Huge Profits Off Post-9/11 GI Bill

December 14, 2010 - Veterans returning from Iraq and Afghanistan can attend college at no or reduced cost under the Post-9/11 GI Bill. The bill was designed as a huge benefit for veterans who want to get an education after their time in the service. It has developed into a huge benefit for others as well. For-profit colleges and universities have been making huge profits off the Post-9/11 GI Bill. Their income from the military has taken a huge upswing and veteran-students are looked at as cash-cows.

In the first 12 months of payments made under the Post-9/11 GI Bill, for-profit universities raked in $640 million, which is just under 40% of the total of all the money paid out for tuition under the Post-9/11 GI Bill. While this figure is fairly impressive, it is even more so given only about 9% of the total nationwide population are enrolled in for-profit universities.

Congress has started to question the education being had at these for-profit universities. Further, the Department of Veterans Affairs (VA) has proposed new rules that if implemented, would prevent colleges whose graduates have demonstrated loan repayments at particularly low levels from drawing federal aid. On the other side of the debate are lobbyists arguing the Post-9/11 GI Bill should also supply veterans taking online classes with housing subsidies-even if they are living at home while taking the classes. Online classes not only offer much flexibility, for those veterans suffering from PTSD and wish to avoid crowded campuses, online classes become much more attractive.

Many fear the for-profit colleges are taking advantage of soldiers and veterans just to grab the federal funding. This is evidenced in for-profit universities growing at rates far out-distancing the general economy, yet most are coming under scrutiny for unethical recruiting practices, dismally low graduation and job placement rates, as well as their high costs and other significant concerns.

Accordingly, the Department of Defense (DoD) is attempting to force colleges accepting tuition reimbursement to sustain certain graduation rates. The most important thing is ensuring veterans are given the correct information when choosing a college and are not being taken advantage of due to their education benefits.