Taxpayer Funds Are Lifeline For More Than 100 For-Profit Schools

Career College Central Summary:

  • More than 100 for-profit colleges are so dependent on taxpayer money that they would be violating a law designed to prevent profiteering if not for a loophole that excludes GI Bill funds and Department of Defense tuition assistance to active duty military.
  • That’s the upshot of an internal Department of Education analysis obtained by The Center for Investigative Reporting, which was completed this summer but never publicly released.
  • The federal law known as the 90/10 rule bans for-profit schools from receiving government funding if schools draw more than 90 percent of their funding from federal student aid programs.
  • The report stems from a 2012 executive order by President Barack Obama in response to the exploitation of veterans and service members by for-profit colleges.
  • Here are five takeaways (read the full article to see the details for each):
  1. 133 for-profit colleges get more than 90 percent of their revenue from taxpayers
  2. Cost to taxpayers: One year, $9.5 billion
  3. The University of Phoenix got $3.7 billion from taxpayers in one year
  4. Failed reforms
  5. 292 more colleges close to funding cap

Click through to read the full article.

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