Contact:

Will Hubbard
VP for Veterans & Military Policy
Veterans Education Success

 

After Decade-Long Fight, the Department of Education
Has Closed The 90/10 Loophole

Major Win for Student Veterans & Their Families

WASHINGTON D.C., October 27, 2022 – Today, the U.S. Department of Education published its final regulations on the 90/10 rule, closing – once and for all – a loophole that had inadvertently incentivized unscrupulous for-profit colleges to target veterans with predatory recruiting.

“After years of harassment by deceptive and aggressive for-profit college recruiters, veterans, service members, and their families will no longer be viewed as nothing more than dollar signs in uniform,” said Veterans Education Success President Carrie Wofford.

Closing the loophole long has been a top priority for Veterans Education Success and veterans organizations nationwide. We led the nationwide effort to mobilize public support for closing the loophole, including rallying the veterans and military community and finally securing bipartisan support in Congress to change the law. We also published numerous policy reports detailing the impact on veterans of being targeted by predatory recruiters, and brought forward hundreds of student veterans to share their stories and their passionate pleas for Congress to act.

The U.S. Department of Education’s announcement today implements and cements that bipartisan Act of Congress, and reflects a consensus that our team helped negotiate and secure among every negotiator during the Department of Education negotiated rulemaking sessions this year.

In addition to protecting veterans, the closure of the 90/10 loophole also will bring needed oversight and accountability to the for-profit college sector because removing the loophole returns the 90/10 Rule in the Higher Education Act to its original purpose – a market viability test: to ensure for-profit colleges are able to secure at least 10% of their revenue from sources other than federal student aid.

Many for-profit colleges have been sued by federal and state law enforcement for illegally deceptive and aggressive recruiting of veterans, servicemembers, their families and survivors, including emotionally charged recruiting tactics, as the U.S. Senate Committee on Health, Education, Labor and Pensions detailed in a groundbreaking report in 2012. Since then, numerous former recruiters and for-profit executives have detailed the emphasis on recruiting servicemembers and veterans, in order to access the “military gravy train.” During COVID, many for-profit colleges increased their social media advertising — some by close to 15,000 percent.

Veterans Education Success applauds the Department of Education for making the closure of this harmful loophole a reality.

“Today’s victory was made possible due to the unceasing efforts of the military and veterans community, and we are so grateful for their collaboration,” said Vice President for Veterans & Military Policy, Will Hubbard. Over the past decade, more than 50 organizations serving the military and veteran community have advocated for this change, including:

Air Force Sergeants Association
Air Force Women Officers Associated
American GI Forum of the United States
AMSUS, Society of Federal Health Professionals
AMVETS
Army Aviation Association of America
Association of Military Surgeons of the United States
Association of the United States Army
Association of the United States Navy
Blue Star Families
City of Boston Office of Veterans’ Services
Coast Guard Chief Warrant and Warrant Officers Association
Code of Support Foundation
Cohen Veterans Network
Combined Arms
Commissioned Officers Association of the USPHS
Disabled American Veterans
Exceptional Families of the Military
Fleet Reserve Association
Gold Star Wives of America
High Ground Veterans Advocacy
Iraq and Afghanistan Veterans of America
Ivy League Veterans Council
Jewish War Veterans of the U.S.A.
Military Chaplains Association
Military Child Education Coalition
Military Officers Association of America
Military Order of the Purple Heart
Modern Military Association
MVPvets
National Association of American Veterans
National Association of Veterans’ Program
National Military Family Association
Non-Commissioned Officers Association
Paralyzed Veterans of America
Psych Hub
Psycharmor
Sea Service Family Foundation
Service to School
Service Women’s Action Network
Student Veterans of America
Swords to Plowshares
The American Legion
The Headstrong Project
The Retired Enlisted Association
Tragedy Assistance Program for Survivors
Travis Manion Foundation
U.S. Coast Guard Chief Petty Officers Association
United States Army Warrant Officers Association
University of San Diego School of Law Veterans Legal Clinic
University of San Diego Veterans Legal Clinic
US Coast Guard Chief Petty Officers Association & Enlisted Association
Veterans Education Success
Veterans for Common Sense
Veterans of Foreign Wars
VetsFirst, United Spinal Association
Vietnam Veterans of America
Wounded Warrior Project

 

More Information

 

About Veterans Education Success

Veterans Education Success is a nonpartisan organization whose mission is to advance higher education success for veterans, service members and military families, and to protect the integrity and promise of the GI Bill and other federal education programs. The organization offers free help, advice and college and career counseling to servicemembers, veterans and their survivors and families using federal education benefits, and helps them participate in their democracy by engaging with policymakers. Veterans Education Success also provides policy expertise to federal and state policymakers, and conducts non-partisan research on issues of concern to student veterans. Additional information is available at www.vetsedsuccess.org.

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Closing of the 90_10 Loophole Statement