Military veterans are being targeted by an industry 'infamous for saddling people with debt and useless degrees'

pulse

December 5, 2017 8:27 PM

A funding loophole called the "90-10" rule leaves military veterans at risk in the for-profit college industry.

The Department of Education is negotiating changes to regulations for for-profit colleges.
The changes could hurt military veterans, a highly coveted subset of students for the industry.
A funding loophole makes veterans highly profitable for for-profit colleges.

The Department of Education began negotiations to related to the for-profit college industry in December, a move that some advocates say will harm students.

For-profits are governed by a federal provision called the "90-10" rule which mandates that for-profit colleges cannot receive more than90% of their revenues from federal student aid from the Department of Education (ED).

But funds from the US Veterans Affairs Office (VA), a federal agency, do not count in the 90% category.

"This loophole creates an incentive to see servicemembers as nothing more than 'dollar signs in uniform,'" the issued after a two-year investigation into the sector.

The report disparaged for-profit colleges for abuses and the share of GI Bill money they receive.

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