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Provision in COVID-19 relief bill would ease incentives for for-profits to target veterans

You can view the letter here, and find all of our Letters to Representative Bobby Scott of Virginia, the Democratic chairman of the House education committee, told reporters on Friday that the rule requires that for-profit institutions “show some semblance of attraction to people.” However, critics of the for-profits, which have at times been found to defraud prospective students about the kind of education they’d get, have long complained the 90-10 rule has a loophole the money service members and veterans use for their education through the GI Bill at for-profits is not counted as federal dollars. Instead, the GI Bill dollars count toward helping for-profits meet the 10 percent minimum requirement. To advocacy groups like Veterans Education Success, that incentivizes for-profit institutions to aggressively try to get service members and veterans to enroll, and many of them have been defrauded.

House Democrats aim to use coronavirus relief package to end GI Bill loophole

By STEVE BEYNON | STARS AND STRIPES Published: February 9, 2021 WASHINGTON Some House Democrats are hoping to terminate a GI Bill loophole that veteran advocates for years have said sets for-profit schools up to scam veterans and service members and use predatory tactics to recruit beneficiaries, according to a copy of the measure obtained by Stars and Stripes. “Predatory for-profit colleges have taken advantage of the ‘90-10 loophole’ to cheat veterans and service members out of their education benefits while providing them with a low-quality education, useless degrees, and burdening them with student loan debt, House Committee on Veterans’ Affairs Chairman Mark Takano, D-Calif., said in a statement. The 90-10 rule was put in place to prevent waste, fraud, and abuse of federal education dollars, but for-profits have exploited the loophole to earn millions in profits.

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