For-profit colleges have been taking advantage of a legislative loophole which enables them to aggressively market their degree courses to veterans in order to get a hold of monies from the federal government. These commercial colleges exist for the sole reason of making money and will do everything in their power to leech away millions of dollars from vets and service members.
You see, there currently exists a 90/10 rule for these for-profit colleges. This rule states that no more than 90% of the schools income can come from federal education funds; they rest must come from other sources. It sounds a bit odd that there exists such a rule, but in reality, this is where these institutions get their money – government-backed loans. If they could still get 100% from government funds, they would. Most of these schools have 89.5-89.9% of their income coming from the government. Okay, that’s crazy, but at least 10% of their income is from other sources right? Unfortunately, no. For some reason, funds from the GI Bill are counted toward the 10%. This is why these institutions market SO heavily to veterans. They NEED to make that 10 percent.
A new bill proposed.
Fortunately, a new bill is on its way that’s set to change the status quo. This new bill proposes an 85/15 ratio, making it that much harder for them to sail on the coattails of the federal government. Other changes include a statute which defines what exactly federal funds are, placing military education benefits in its umbrella, making these funds less prone to exploitation. The bill proposes fines for commercial colleges which do not comply with the new 85/15 law. These colleges would also lose the eligibility needed to apply for federal student aid if they haven’t complied with the new law for a whole year.
It’s also shocking that these colleges make up a large percentage of college loan defaults in the country. This could be due to the fact that most of their graduates are unable to get employment because their degrees are not in line with the demands of the job market.
What can I do?
Quality education is an inalienable right for everyone who seeks it. For-profit colleges aggressively market their services to military service members so they can get their hands on these funds without caring about the level of education that they’re actually offering. The government is trying to put a stop on such practices. However, you need to act in order to help yourself. If you’ve been a victim of for profit colleges, you may be able to sue them and get compensation for the damages they’ve caused you.
Rasansky law firm has a team of committed education scam lawyers who have the needed experience to try your case for you. We work on a contingency fee basis meaning that we won’t charge you a single cent unless we collect for you. Call us today for your free consultation as well as expert legal assistance. We look forward to serving you.