A recent editorial in the New York Times hails an effort by the Obama Administration  that "deserves unanimous support" in Congress to close a loophole that stands to harm veterans seeking to better themselves through higher education.

The current loophole allows for-profit colleges -- which are prohibited from receiving more than 90 percent of their revenue from federal financial aid -- to not include aid provided to veterans as federal aid in meeting the 90/10 ratio. 

"By failing to explicitly count G.I. Bill benefits and Department of Defense Tuition Assistance in the 90 percent, Congress created an opening for the schools to count this aid as part of the private 10 percent. By pursuing and signing up veterans, schools can now cover up the fact that few, if any, private citizens are willing to pay to attend them," The Times wrote.

According to the Times, "After passage of the Post-9/11 G.I. Bill in 2008, more federal dollars began flowing into the coffers of publicly traded for-profit colleges, many of which have come under scrutiny for deceptive or illegal practices. For example, a Senate report issued last summer noted that seven companies with relatively high levels of G.I. Bill revenue were under investigation by state attorneys general or federal agencies for deceptive and misleading recruiting or other possible violations of federal laws."

The Times added: "This industry clearly needs to be cleaned up. Congress can take the simple step of revising the 90-10 rule so that G.I. Bill and Defense Department tuition are counted as what they clearly are: taxpayer dollars."



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