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Better Protection from Student Loan Fraud Needed By Veterans and the Rest of Us

Student-Loan-Fraud

By Debbie Gregory.

Veterans, with their attractive and generous GI Bill education benefits have been targeted by predatory, for-profit colleges. Often times, they leave with a partial education, or if they do graduate, the diploma comes with a mountain of debt. And for some, they find out too late that their credits won’t transfer or they don’t qualify for the licenses they need.

Until it filed for bankruptcy in 2015, the Corinthian College group was a leader in student loan fraud. Federal authorities, as well as the California attorney general’s office have gone after Corinthian. California’s AG successfully obtained a judgment for more than a billion dollars due to deceptive advertising and unlawful lending practices, and the Federal Consumer Financial Protection Bureau obtained a 40 percent reduction in the private loans owed for tuition at Corinthian Colleges.

Additionally, the U.S. Department of Education discharged student loan debt for over 27,000 students who enrolled in one of Corinthian’s programs, and it has promised debt relief to 23,000 more former students seeking debt relief based on allegations of fraud.

ITT Tech was another for-profit that filed for bankruptcy, leaving more than 35,000 students in limbo when it closed.

Corinthian, like many other for-profit schools, used fine-print forced arbitration clauses in its student enrollment contracts to have any litigation against the school dismissed.

Education Secretary Betsy DeVos has not been able to secure loan relief to students.

Relief may be on the way in the form of a rule that requires schools taking federal aid to drop forced arbitration, allowing students to pursue fraud claims in court. But DeVos has delayed the rule and is considering reversing it.

Not all for-profit colleges are in favor of arbitration. The University of Phoenix has eliminated mandatory arbitration clauses in student-enrollment agreements. Greg Cappelli, CEO of University of Phoenix’s parent company said that the decision “is the right choice for all of our students.”

DeVry University has also eliminated mandatory arbitration clauses.

The Consumer Financial Protection Bureau has issued a new rule that restores the ability of students, service members and other consumers to band together in court when banks, student lenders and other financial companies act illegally.

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.

Here’s What You Need to Know About the Forever GI Bill

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By Debbie Gregory.

The “Forever GI Bill,” a sweeping expansion of GI Bill education benefits, is on its way to the Oval Office.

Passed by both houses of Congress, the bill will increase veteran’s benefits by more than $3 billion over the next decade.

One important change, reserved for those who become eligible after January 1, 2018, is the removal of the 15-year limit on using their GI Bill benefits, which offers them more flexibility.

Additionally, the Forever GI Bill boosts education assistance for National Guard and Reserve troops, Purple Heart recipients and for the dependents of fallen troops.

Reservists called to active duty under sections 12304(a) and 12304(b) are now eligible. Previously, only reservists called to active duty by presidential order as a result of a national emergency were eligible. This applies to all reservists mobilized after Aug. 1, 2009, but reservists can receive payment only for classes that start after Aug. 1, 2018.

Reservists who were receiving REAP payments may now be eligible for the Post-9/11 GI Bill. Currently, there are less than 4,000 people eligible for this benefit.

Purple Heart recipients will get the full GI Bill amount, regardless of how long they served on active duty.

For veterans who were caught up in the collapse of for-profit schools Corinthian Colleges and ITT Tech, the legislation would fully restore their GI Bill education benefits.

Of course, all of this comes with a price tag, and the expansion will be paid for by reducing the increases in housing allowances paid under the GI Bill to new beneficiaries. As of January 1, 2018, the GI Bill housing allowance will decrease an average of $100 a month. Active-duty BAH is also affected, decreasing each year by 1 percent every year from 2015 to 2019,  so that by 2020, BAH will only cover 95 percent of a military member’s housing cost.

The housing allowance for GI Bill students will now be based on the campus location where classes are attended, not necessarily the main campus.

Effective August 1, 2018, Dependent’s Education Assistance (DEA) monthly payments will increase by about 50 percent, but the maximum number of months that a dependent can get DEA decreases from 45 to 36.

Also effective August 1, 2018, STEM (Science, Technology, Engineering, and Mathematics) programs are eligible for the “Edith Nourse Rogers Scholarship” which will pay veterans up to $30,000 if they have used up all their GI Bill benefits and have at least 60 semester/90 quarter hours credit toward a STEM degree. It also will pay those who already have a STEM degree and are working on a teaching certification.

The High Technology Pilot Program, scheduled to start in the spring of 2019, covers the full cost of high technology training offered by a company versus a school.

MilitaryConnection.com has a comprehensive education area, and we invite you to check out the numerous education resources at https://militaryconnection.com/education.

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.