Some For-Profit Colleges See GI Bill as Cash Cow: Military Connection

Some For-Profit Colleges See GI Bill as Cash Cow

By Debbie Gregory.

In 2009, the Post-9/11 GI Bill significantly increased the higher education benefits available to individuals who served on active duty in the U.S. armed forces after September 10, 2001. In the transition back to civilian life, many veterans are finding their way back to school to begin or continue their higher education and career plans.

With that said, the choice of school may be surprisingly complex. Economically, most students find the expense of school to be daunting. At the same time, many for-profit colleges are finding the way to stay open is to accept veterans – and their benefits.

Since 2009, $8.2 billion has been collected by for-profit colleges. As many as 30% of U.S. veterans have enrolled in college with the GI Bill.

The guarantee of funds from veteran students is appealing to these colleges, but for-profit schools have been accused of aggressively targeting veterans to enroll. Many of the schools have been hiring veterans as recruiters, hoping to appeal to the potential students’ sense of camaraderie.

For-profit schools are required by a federal student aid regulation, known as the 90/10 rule, to assure that at least 10 percent of their revenue is derived from non-federal sources. With tuitions rising, and the majority of students who are able to afford these costs being comprised primarily of veterans, this ratio is harder and harder to meet. Some schools, such as Corinthian College, have not able to maintain that ratio and have been forced to close their doors.

While students are acquiring the training they seek to pursue careers, veterans are advised to review the options presented by for-profit schools, such as whether their credits will matriculate to other institutions if they need to transfer. Veterans may find for-profit schools offer good trade skills, but may realize that some of them are up to four times the cost of an in-state, public school.

Veterans may want to keep these points in mind in case the school does have a risk of closing, for they will want to be in the position of continuing their education, keeping adequate resources, while still focusing on their career goals.

Military Connection salutes and proudly serves veterans and service members in the Army, Navy, Air Force, Marines, Coast Guard, Guard and Reserve,  and their families.