For-Profit Colleges and the GI Bill: A Worthwhile Investment?
DEPARTMENT OF JUSTICE WASHINGTON DC
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The proliferation of for-profit colleges and questions about their recruiting tactics and program quality has caused concern among educators and legislators for quite some time. This issue also has been a concern within military and veterans communities because of the number of servicemembers and veterans who choose to use their tuition assistance or GI Bill benefits at for-profit colleges. The enactment of the Post 911 GI Bill has made this a more urgent problem for two reasons. First, a larger number of servicemembers and veterans are using these benefits at for-profit colleges. Second, as for-profit colleges seek to stay within the mandates of the 9010 rule, which requires that they receive at least 10 percent of their revenue from non-federal funding sources, they are aggressively targeting servicemembers and veterans eligible for GI Bill benefits because those benefits do not count as federal benefits for purposes of the 9010 calculation.
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