Quigley, Reps Introduce Bipartisan Bill to Protect Veterans and Servicemembers from Predatory For-Profit Colleges

Statement

Today, U.S. Representatives Mike Quigley (IL-05), Jackie Speier (CA-14), Mark Takano (CA-41), Walter Jones (NC-03), and 18 original co-sponsors introduced the Military and Veterans Education Protection Act, which would close the "90/10 loophole" that encourages for-profit colleges to aggressively recruit, and in many cases defraud veterans receiving benefits under the GI bill and service members using Department of Defense Education Program funds. U.S. Senator Tom Carper (DE) introduced an identical bill, S. 1664, in the Senate in June.

"Veterans made the ultimate sacrifice to protect our country and it is our job to serve them in return by making sure all servicemembers are well-equipped to succeed as civilians," said Rep. Quigley. "One of the ways we can do that is by ensuring men and women from all branches of service have the opportunity to pursue quality education from institutions that are dedicated to the success of their students. Closing the current "90/10 loophole" will take away the ability for those select for-profit institutions to misuse taxpayer funds and deceive veterans, allowing servicemembers to receive a genuine education that propels them forward."

The "90/10 loophole" has led to aggressive, high-pressure sales tactics targeting veterans. As Holly Petraeus of the Consumer Financial Protection Bureau noted, "This gives for-profit colleges an incentive to see service members as nothing more than dollar signs in uniform, and to use aggressive marketing to draw them in." Seven of the eight top for-profit recipients of Post-9/11 GI Bill funds are currently under investigation for deceptive and misleading recruiting or other possible violations of state and federal law. In the last month alone, the Department of Defense banned the University of Phoenix (number one recipient of G.I. Bill funds) from U.S. military bases, and ITT Tech (number two recipient of G.I. Bill funds) has come under federal investigation and stopped new student enrollment at several campuses. The Military and Veterans Education Protection Act would close this "90/10 loophole" in order to protect military and veteran students, as well as taxpayers, by ensuring that for-profit schools obtain at least 10 percent of their revenues from non-federal funding sources.

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