Attorneys General Urge Congress To Close Military ‘Loophole’ At For-Profit Colleges

Attorneys general for 21 states have called on Congress to close an "apparent loophole" that they say encourages for-profit colleges to use "high-pressure recruiting tactics" on military veterans.

In a letter sent on Tuesday to leaders of the House and Senate education and veterans-affairs committees, the 21 attorneys general and a chief consumer-affairs official for a 22nd state urge Congress to change the "90/10" rule so that GI Bill and other educational benefits for veterans count toward the 90-percent cap on the amount of annual revenue a for-profit college may receive from federal student-aid programs.

Currently, the 90/10 rule allows colleges to exclude veterans' benefits and military tuition assistance provided by the Defense Department from the 90 percent. Instead, those funds are treated as if they were part of the nonfederal, 10-percent side of the calculation.

Over the past few months, several members of Congress have introduced legislation to tighten the 90/10 rule, with many of the bills specifically aimed at how the rule treats veterans' benefits.

The 90/10 rule was intended to ensure greater accountability in the for-profit sector, and it is unpopular both in the sector,which contends it is an ill-conceived proxy for quality, and among critics of the sector, who say it is too easily "gamed."

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