{"id":14209,"date":"2021-03-10T19:11:00","date_gmt":"2021-03-10T19:11:00","guid":{"rendered":"https:\/\/one.sightlinemg.com\/armytimes\/uncategorized\/2021\/03\/10\/gi-bill-vets-may-be-less-attractive-to-for-profit-schools-under-new-law\/"},"modified":"2026-08-08T05:20:39","modified_gmt":"2026-08-08T05:20:39","slug":"gi-bill-vets-may-be-less-attractive-to-for-profit-schools-under-new-law","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/armytimes\/education-transition\/2021\/03\/10\/gi-bill-vets-may-be-less-attractive-to-for-profit-schools-under-new-law\/","title":{"rendered":"GI Bill vets may be less attractive to for-profit schools under new law"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Lawmakers on Wednesday <a href=\"https:\/\/www.militarytimes.com\/education-transition\/2021\/02\/10\/covid-relief-package-includes-major-change-in-for-profit-colleges-rules-on-gi-bill-benefits\/\" target=_blank>finalized plans for major changes<\/a> in for-profit colleges\u2019 ability to recruit and enroll veterans in degree programs, but students are unlikely to see any school restrictions or closings as a result of the move for several more years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That\u2019s because Senate lawmakers added language delaying rule making on the sweeping changes for six months, to allow veterans advocates and for-profit industry officials time to adjust practices and minimize disruption for <a href=\"https:\/\/www.militarytimes.com\/education-transition\/2020\/03\/30\/student-veterans-worry-coronavirus-outbreak-will-hurt-graduation-goals\/\" target=_blank>individuals completing their studies<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s a compromise that is being praised by both sides of the debate, but it also means the full impact won\u2019t be seen until late 2023 at the earliest. But veterans groups said that doesn\u2019t minimize the scope of the changes ahead, or the potential future benefits to weed out predatory schools focused more on enrolling veterans than providing quality education opportunities.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/militarytimes\/education-transition\/2021\/02\/10\/covid-relief-package-includes-major-change-in-for-profit-colleges-rules-on-gi-bill-benefits\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"157\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP_16301590846325-RESIZED.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">COVID relief package includes major change in for-profit colleges\u2019 rules on GI Bill benefits<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Congressional Democrats could change the so-called 90\/10 rule, a goal of some education advocates for years.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">\u201cAfter nearly a decade of requests from veterans and military organizations, we are grateful Congress is moving to finally remove the target from the backs of veterans and servicemembers by closing this loophole,\u201d said Carrie Wofford, president of Veterans Education Success.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFor too long, bad actor colleges have treated veterans and servicemembers as nothing more than dollar signs in uniform.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At issue is the so-called 90-10 rule, which requires colleges and universities to have at least 10 percent of their revenues derived from non-federal sources like tuition or fundraising.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The idea behind the regulation is to ensure that for-profit institutions aren\u2019t funded solely by federal dollars, essentially using taxpayer money as their only reliable source of income. However, under a loophole in existing rules, GI Bill benefits and Defense Department Tuition Assistance programs are not counted as federal money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFor decades, the 90-10 loophole incentivized predatory schools to unfairly target student veterans and members of the military,\u201d said Jared Lyon, president of Student Veterans of America.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Schools with large numbers of students using the GI Bill could plus up their federal money well above the 90 percent mark, increasing their guaranteed funds regardless of student performance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis legislation will protect recipients of the GI Bill, including military widows and surviving children, from those who would take advantage of their government education benefits to lure them into attending their predatory for profit institutions of higher learning,\u201d said Bonnie Carroll, president and founder of the Tragedy Assistance Program For Survivors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Plans to close the loophole gained some momentum in Congress last session, but failed to become law before the end of term. So congressional Democrats included language to close that loophole in the earliest versions of their $1.9 trillion coronavirus relief bill.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But several Republicans objected to that plan, saying it moved too quickly and risked disrupting veterans\u2019 education plans by forcing schools to close too quickly if they weren\u2019t in line with the new regulation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Over the weekend, a bipartisan group of lawmakers led by Sen. Tom Carper, D-Del., and Jerry Moran, R-Kansas, pushed through new language to extend the rule making and compliance portions of the change. House lawmakers finalized that deal when they passed the coronavirus relief package Wednesday afternoon.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe need to make sure we do this in the right way, make these changes in the correct way, and we need to ensure we put the policy back in the perspective of not politics but the right answer,\u201d said Moran, ranking member of the Senate Veterans\u2019 Affairs Committee, shortly before the unanimous Senate vote on the issue last weekend.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cBy providing a six-month delay before the start of a negotiated rulemaking process, Congress now has time to work together with our veteran service organizations and the higher education community on a bipartisan plan to deliver reasonable and needed protections for veterans and taxpayers alike.\u201d<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/militarytimes\/news\/pentagon-congress\/2021\/02\/11\/coronavirus-relief-plan-includes-billions-in-new-funds-for-veterans-programs\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP20350563025309.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Coronavirus relief plan includes billions in new funds for veterans programs<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">About $17 billion of the nearly $2 trillion package would go to bolster programs at the Department of Veterans Affairs.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">That final plan drew praise from for-profit industry representatives.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe Senate [change] will allow time for a fair, rational, and permanent solution for an issue that has been driven by partisan politics for far too long,\u201d said Jason Altmire, president of Career Education Colleges and Universities. \u201cWe support collaborative and bipartisan solutions to the issues that divide us.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After President Joe Biden signs the measure into law \u2014 a move that is expected to happen on Friday \u2014 work will begin on the next phase of establishing the new federal funding rules for colleges and universities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Officials rule making won\u2019t start until October 2021, after extensive talks between federal officials, lawmakers and outside advocates. Schools won\u2019t face any potential penalties until 2024 at the earliest.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">VES officials have estimated that at least 37 for-profit schools across the country today would be affected by reclassifying GI Bill money into the federal funding calculations. Many students currently enrolled in those programs could complete their degrees before the new rules are in place.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Numerous other schools have changed recruiting practices in recent years in anticipation of a potential change.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The 90\/10 loophole, a focus of education advocates for years, will disappear in coming years.<\/p>\n","protected":false},"author":7,"featured_media":31124,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":7,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[100,7,23,93,12,25,68,19],"tags":[],"coauthors":[3334],"class_list":["post-14209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-education-transition","category-home","category-middle-column","category-news","category-newsletters","category-pentagon-congress","category-veterans"],"acf":{"subheadline":"","legacy_arc_id":"LQEEBWCBYBECBD3HRUHVMKSDXU","arc_canonical_url":"\/education-transition\/2021\/03\/10\/gi-bill-vets-may-be-less-attractive-to-for-profit-schools-under-new-law\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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