MEDIA ADVISORY
Contact: Ana Cobian ana.cobian@wardcirclestrategies.com, 323-360-1827

San Antonio Army Veteran Left with $400,000 in Debt
After Attending Government-Approved Sham School
Army Veteran to Testify at Federal Virtual Hearing Thursday:
Dismantling Department of Education Oversight Leaves
Defrauded Student Veterans without Recourse

Register for Virtual Public Hearing | U.S. Department of Education

Thurs, August 7, 9:54 AM EDT; (Testimony and video recording )

WHO:

Valerie Scott, a U.S. Army and Army National Guard veteran from San Antonio, TX, served her country for 10 years. She pursued a doctorate in clinical psychology at Argosy University—only to be misled, defrauded, and left with more than $400,000 in student debt.

“Argosy told me lies, and I am now saddled with enormous debt. I have made it my mission to speak out against schools that make misrepresentations in order to enroll students. I continue to advocate for the Department of Education to provide relief to the students who were wronged by schools that they approved.”

— Valerie Scott

She is now the primary caregiver of her autistic son.

WHAT:

Testimony before the Department of Education’s virtual public hearing on proposed changes to student loan and higher education accountability rules.
Valerie will share how Argosy University—a now-defunct, for-profit institution—lured veterans, service members, and military spouses with false promises, misused federal funds, and left her with an expensive degree that not all employers recognize.

WHY IT MATTERS:

Thousands of veterans have fallen victim to predatory schools that promise high-quality degrees, only to deliver debt and disappointment.

The Department of Education is now laying off the oversight teams that helped protect student veterans and hold bad actors accountable.

Without a robust oversight function, future veterans may be scammed out of their GI Bill benefits by sham schools and have no recourse to fight back.

  • Valerie was told her education would cost $80,000—she ended up with $267,000 in federal loans, now ballooned with interest to over $400,000.
  • On Day One of class at Argosy, she and others were told they could not work during their time as Argosy students and were handed federal loan applications instead.
  • She was denied a commission with the U.S. Air Force, allegedly due to the reputation of Argosy’s program.
  • Her story illustrates systemic failures in oversight and the real human cost when the Department of Education approves predatory institutions.
  • She calls upon the Department of Ed to protect key oversight roles to prevent more veterans from her fate who are at risk of being left without protection or recourse.
  • Congress could enable defrauded veterans to recover their GI Bill benefits.

Veterans’ personal stories expose systemic failure.

  • Ironically, the federal government approved schools for federal student aid that it now recognizes as sham schools – leaving veterans with useless degrees and crushing debt. Valerie said that the Air Force wouldn’t commission her with a degree from Argosy University, yet VA paid for veterans to obtain degrees from there.
  • No accountability on either end:
    • Front-end: lax oversight allows predatory schools to flourish
    • Back-end: no reliable recourse once students are defrauded
  • Student loans cannot be discharged in bankruptcy, and the government collects them aggressively.
  • The system continues to stigmatize victims rather than the institutions that defrauded them.

About Negotiated Rulemaking: The Department is required to solicit public input on changes to federal regulations governing colleges and student loans, and it must form a “negotiated rulemaking” committee that includes representatives of interests significantly affected by any regulatory changes. Two committees are planned: Fall 2025: Focus on student loans and repayment; and Early 2026: Focus on accountability, gatekeeping, and institutional eligibility.

Interview Opportunities:

  • Valerie Scott is available for interviews following her testimony.
  • Barmak Nassirian, Vice President for Higher Education Policy, Veterans Education Success, is available on background to provide expert context on the Department of Education’s regulations and regulatory process. A nationally-recognized expert on higher education policies, he formerly served on the rulemaking committees in 2013, 2022, and 2024.

Veterans Education Success is a nonprofit organization whose mission is to work on a bipartisan basis 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 postsecondary education programs. The organization offers free help, advice, and college and career counseling to veterans using the GI Bill and helps them participate in their democracy by engaging with policymakers. Veterans Education Success also provides non-partisan policy expertise to federal and state policymakers and conducts non-partisan research on issues of concern to student veterans. Additional information is available at vetsedsuccess.org.

VES Valerie Scott MEDIA ADVISORY