“This is personal for me,” says Shalala. “Every generation of my family has served in our country’s military, and all have used their educational benefits. I know the value of a good education. I have seen it firsthand in my four decades as an educator and as a college president. Our veterans deserve better than policies that allow bad actors in our education system to take advantage of their service and their sacrifice.”

GI Bill funds and Department of Defense Tuition Assistance – money off-duty service members can use for educational programs – don’t count as government funds under Title IV. So, enrolling service members and veterans is an easy way for for-profits to meet their 10 percent requirement, while dipping further into the federal piggy bank. For every veteran or service member, for-profits can enroll nine students paying with federal funds.

The 90/10 rule is supposed to be a “market test,” says Tanya Ang, policy and outreach director at Veterans Education Success, because a reputable school should be able to attract some non-government funds. For example, Ang is helping her daughter pay for tuition at Pennsylvania State University because she knows the school will afford her daughter career opportunities. If no one is willing to pay for a school out-of-pocket, that’s a bad sign – and it sets a bad precedent, she argues.

“No school should be federalized,” Ang says. “If they’re getting 100 percent of their funds from the federal government – or close to 100 percent of their funds – those are corporate entities that are federalized.”

Read the full story at Diverse Issues in Higher Education, “Proposed Amendment Scrutinizes For-Profit Schools Targeting Veterans” published on September 10, 2019.