Trump Administration Wants to Legalize Payoffs to VA Officials by For-Profit Schools
By Debbie Gregory.
Before taking office last year, Donald Trump agreed to pay $25 million to settle multiple lawsuits claiming fraud at Trump University, his for-profit real estate school.
Last month, the Trump administration announced that Julian Schmoke Jr., a former official at for-profit DeVry University, would be in charge of a Department of Education unit that polices colleges for student aid fraud. Last year, DeVry paid $100 million to settle federal claims it misled students, including veteran education programs.
And now, the Trump administration is seeking to waive an anti-corruption law that has been on the books for 50 years. The law prevents officials who administer the GI Bill from accepting money from for-profit schools backed by taxpayer subsidies.
The waiver would allow employees of the Department of Veterans Affairs to receive “wages, salary, dividends, profits, gratuities” and services from for-profit schools that receive GI Bill funds.
Veterans’ advocates, who have battled for veteran education rights against predatory colleges, were blindsided.
“Bizarre and very likely illegal,” said Carrie Wofford, president of Veterans Education Success. The non-profit group works to protect and defend the integrity and promise of the GI Bill and other federal education programs for veterans and servicemembers.
“There are federal laws – including federal criminal laws – that prohibit federal employees from engaging in this exact behavior,” she said.
The rule change could create conflict of interest where VA officials, who are charged with ensuring GI Bill funds are well spent, could accept payments from colleges facing scrutiny.
VA employees could also own or run a for-profit college that profits from the GI Bill.
The VA angered many veteran advocates by allowing for-profit Ashford University to continue receiving GI Bill money, this in spite of the fact that California and Iowa regulators revoked its certification from the program.
Ashford circumvented the revocation by moving its official address from Iowa to Arizona.
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