MAINT STREET: Obama Drops a Bomb That Would Put Military Benefits Off-Limits to For-Profit Colleges
Career College Central Summary:
The Obama administration has included a provision in its 2016 budget that would close the loophole in a law that bars for-profit colleges from getting more than 90% of their revenue from the federal government and end what for-profit critics have called predatory marketing and lending practices aimed at military veterans and their families. The loophole now excludes the GI Bill and the Department of Defense tuition assistance benefits from the 90% limit.
About 44% of all student loan defaults come from for-profit colleges even though they only enroll 10% of all college students. Nearly 13% of students at public colleges default on loans even though they enroll 75% of the nation’s students, according to Senator Dick Durbin (D-Ill.).
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