Thursday, August 21, 2014

New Senate Report: Is the New G.I. Bill Working? For-Profit Colleges Increasing Veteran Enrollment and Federal Funds


The Obama administration and the Democratic members of the Senate Health, Education, Labor, and Pensions (HELP) Committee are concerned about whether federal student aid is being used effectively to graduate postsecondary students with degrees or certificates that prepare them for entry into high-skill, high-demand occupations.  These officials have been looking at institutions with high dropout rates and those whose students accumulate student debt in excess of their ability to repay their loans.  To address one part of this issue, veterans’ educational benefits, the committee released the report Is the New G.I. Bill Working? For-Profit Colleges Increasing Veteran Enrollment and Federal Funds.  
Three years ago, according to the report, the HELP Committee determined that, of the top 10 recipients of veterans’ education benefits under the Post-9/11 GI Bill, eight were large, publicly traded companies operating for-profit colleges.  Now, in the program’s fourth year, analysis finds that enrollment of veterans in for-profit colleges has again increased substantially, even though overall for-profit college enrollment has declined.
Financially, the report notes that, “Taxpayers continue to spend twice as much on average to send a veteran to a for-profit college,” even as up to two-thirds of the total students who enrolled at these for profit colleges in 2008–09 terminated their studies without a degree or a diploma.  There also is the concern that some for-profit college companies are increasing their dependence on veterans funds “to comply with federal requirements intended to ensure that these companies do not become overly reliant on federal education resources.”
In addition to these general findings, other specific discoveries are causing concern among the committee members.  Examples of these include the following:
  • In 2009, 62 percent of veterans attended a public college.  That percentage dropped to 50 percent in 2013.  The percentage of veterans enrolled in for-profit colleges increased from 23 to 31 percent over that same time period.
  • From the 2009–10 to the 2012–13 school years, the number of veterans attending for-profit colleges and the amount of benefits those colleges received increased more than at other institutions of higher education.
  • The yearly burden on taxpayers is twice as high, on average, to send a veteran to a for-profit college as compared to a public college or university ($7,972 versus $3,914).
  • For the 2012–13 school year, Post-9/11 GI Bill benefits in the amount of $1.7 billion went to for-profit colleges. This was nearly the entire program cost in 2009.
These and other HELP Committee concerns are detailed in this report, and show why the for-profit higher education sector has become increasingly controversial in recent years.

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