Information and background on the issue of veterans and military education benefits and career education programs

On March 23, 2013, Senators Harkin and Hagan re-introduced the Protecting Financial Aid for Students and Taxpayers Act which “aims to maximize the value of federal student aid and taxpayer dollars by prohibiting the use of Pell Grants, federal student loans, the Post-9/11 G.I. Bill, and other federal education funds for advertising, marketing and recruitment, similar to a current law that bans the use of federal higher education dollars for lobbying.”

On a visit to Fort Stewart in Georgia on April 27, the President signed an Executive Order designed to protect veterans and servicemembers and their families from colleges that seek to mislead them. In his speech, the president said:

“I’m not talking about all schools. Many of them — for-profit and non-profit — provide quality education to our servicemembers and our veterans and their families. But there are some bad actors out there. They’ll say you don’t have to pay a dime for your degree but once you register, they’ll suddenly make you sign up for a high interest student loan. They’ll say that if you transfer schools, you can transfer credits. But when you try to actually do that, you suddenly find out that you can’t. They’ll say they’ve got a job placement program when, in fact, they don’t. It’s not right. They’re trying to swindle and hoodwink you. And today, here at Fort Stewart, we’re going to put an end to it.”

The goal of the Executive Order is to:

• Create a centralized complaint system for students receiving Federal military and veterans educational benefits to register complaints that can be tracked and responded to by the Departments of Defense, Veterans Affairs, Justice, and Education, the CFPB, and other relevant agencies.
• Provide students with educational and financial information to make informed decisions.
• End fraudulent and aggressive recruiting techniques on and off military installations.
• Ensure support services for service-members and veterans.
• Develop and collect service member- and veteran-specific student outcome data.
• Begin the process to trademark the term “GI Bill.”

The full text of the Executive Order is here; the White House news release is here; background on the visit and event is here; the text of the President’s Fort Stewart speech is here, and President’s weekly radio address, which was also on this topic, is here. Veterans organizations that have been working on this issue came out in strong support of the Executive Order. Statements were issued by many groups, including the American Legion, Military Officers Association of America, Student Veterans of America, Iraq and Afghanistan Veterans of America, Veterans of Foreign Wars, and Vietnam Veterans of America.

On April 18, 2012, Senators Kay Hagan (D-NC) and Tom Harkin (D-IA) introduced legislation to “ensure that taxpayers’ investment in federal assistance for college students is not being wasted on advertising, marketing and recruitment rather than being used to educate and support students. The Protecting Financial Aid for Students and Taxpayers Act will maximize federal student aid by prohibiting the use of Pell Grants, federal student loans, the Post-9/11 G.I. Bill, and other federal education funds for such practices, similar to a current law that bans the use of federal higher education dollars for lobbying.”

Senate Legislation S.2296: Protecting Financial Aid for Students and Taxpayers Act

News Release

Text of bill and bill information

In a news release issued February 23, 2012, Senator Tom Harkin (D-IA) announced the release of “new Department of Defense (DoD) data showing that for-profit colleges received half of all military Tuition Assistance (TA) dollars – $280 million out of $563 million spent last year on the program that gives service men and women the opportunity to take college classes while on active duty. This new information underscores the impact of for-profit colleges’ aggressive recruiting on bases and military-related websites. It also emphasizes the importance of strengthening eligibility requirements for colleges participating in the TA program in order to ensure that service members and their spouses are getting a quality education and taxpayer dollars are not being wasted.”

News Release: New Data Reveals For-Profit Colleges Take in Bulk of Active Duty Military Education Benefits

U.S. Senate HELP Committee analysis: Department of Defense Data Reveals For-Profit Colleges Are Taking in the Bulk of Military Tuition Benefits

Charts produced by HELP Committee majority staff: For‐Profit Colleges Collect Half of All Department of Defense Tuition Assistance Benefits

The 90-10 Rule is a federal law barring for-profit colleges from receiving more than 90% of their revenues from Department of Education federal student aid. It is modeled on the Department of Veterans Affairs’ long-standing 85-15 Rule, which prohibits more than 85% of a program’s students from receiving VA funding.

Bills have been introduced in the Senate and House that would close the loophole that allows schools to count GI Bill funds and Department of Defense Tuition Assistance as private rather than federal dollars. One bill would also reinstate the stronger 85-15 ratio.

Senate Legislation S.2116: Military and Veterans Education Protection Act

- News Release

- Text of bill and bill information

House Legislation HR.4055: Military and Veterans Education Protection Act

News Release

Text of bill and bill information

Senate Legislation S.2032: Protecting our Students and Taxpayers (POST) Act

News Release

Text of bill and bill information

Q&A on the 90-10 Rule (November, 2012)

Senators Tom Harkin (D-IA) and Tom Carper (D-DE) held a press conference on September 22, 2011 to unveil new data on which colleges are taking in the most Post-9/11 G.I. Bill education benefits. The Post-9/11 G.I. Bill is providing those who have served our nation since 9/11 the most comprehensive educational benefits since World War II. The Senators, who are all military veterans themselves, are seeking to ensure that those who use the benefits get a quality education.

New Data on Post-9/11 G.I. Bill Benefits and For Profit Colleges (pdf), data updated November 3, 2011

Senate Committee on Homeland Security & Governmental Affairs: Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security

Hearing: Improving Educational Outcomes for our Military and Veterans, September 22, 2011.

Includes witness list, testimony, a link to the hearing webcast and letters from veterans organizations calling for stronger oversight of the GI Bill.

Letter from the Veterans of Foreign Wars (VFW) to Senator Patty Murray, Chair of the Senate Committee on Veterans Affairs, expressing concern over “reported rampant exploitation of our veterans and military members eligible for robust education benefits . . . “, August 24, 2011

Senate Committee on Health, Education, Labor & Pensions

Full Committee Hearing: Improving For-Profit Higher Education: A Roundtable Discussion of Policy Solutions, July 21, 2011

Includes testimony of Holly Petraeus, Director, Office of Servicemember Affairs, Consumer Financial Protection Bureau, Washington, DC. Ms. Petraeus’ testimony begins at minute 54 in the webcast.

Senator Tom Harkin floor speech on deceptive marketing to veterans including video and related documents, May 19, 2011

Senate Committee on Homeland Security & Governmental Affairs: Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security

Hearing: Preventing Abuse of the Military’s Tuition Assistance Program, March 2, 2011

Member Statements, Witness Testimony, and hearing webcast

Government Accountability Office (GAO) report: DOD Education Benefits: Increased Oversight of Tuition Assistance Program is Needed, March 2011

Senate Committee on Health, Education, Labor & Pensions report Benefitting Whom? For-Profit Education Companies and the Growth of Military Education Benefits, December 8, 2010.

House Armed Services Committee: Oversight and Investigations Subcommittee

Letter summarizing the findings from its review of Department of Defense Tuition Assistance programs, November 5, 2010

House Armed Services Committee: Oversight and Investigations Subcommittee

Hearing: A Question of Quality and Value: Department of Defense Oversight of Tuition Assistance Used for Distance Learning and For-Profit Colleges, September 22, 2010

Coalition letters signed by veterans organizations calling for strong regulation of career education programs: