Anger grows over GI Bill profiteers
The Los Angeles Times reports:
Congress, the White House and veterans groups — spurred by complaints from thousands of veterans like Maddox — are cracking down on for-profit schools that have raked in hundreds of millions of dollars in GI Bill benefits. They say the schools prey on veterans with misleading ads while selling expensive and woefully inadequate educations.
Since the Post-9/11 GI Bill took effect in 2009, eight of the 10 colleges collecting the most money from the program have been for-profit schools.
The companies earned 86% of their revenue from taxpayer dollars in 2009, mostly GI Bill payments, according to Congress, with the top 20 for-profit education companies receiving $521 million in veterans’ education funds in 2010.
Yet taxpayers spend more than twice as much to educate a veteran at a for-profit school than at a public university. Congressional investigators say for-profit schools have far higher drop-out rates and loan interest and default rates than public universities, and credits earned at many for-profit schools don’t always transfer to public schools.
Veterans’ groups say for-profit schools snare unsuspecting veterans with aggressive marketing, high-pressure sales calls and ads that falsely imply that their schools are exclusively approved for GI Bill benefits.