Senate Panel Boosts Pentagon Research, Curbs Funding to For-Profits

Career College Central Summary:

  • [The Senate Appropriations Committee] approved a provision, pushed by Senator Dick Durbin of Illinois, a Democrat, that would place a new restriction on some of the federal military benefits that are used at for-profit colleges. Durbin's language would change the so-called "90/10 rule" that caps for-profit colleges' receipt of grants and loans administered by the Education Department at 90 percent of their annual revenue.
  • The bill would include money from the Pentagon's Tuition Assistance program as part of that cap.
  • Such benefits, as well as veterans' educational aid, are not included in that calculation, which for-profit critics say makes them vulnerable to aggressive and predatory recruiting.
  • For-profit industry representatives have rejected such efforts, arguing that they would reduce access to their institutions for servicemembers and veterans.

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