For-Profit Colleges Cashing in on G.I. Bill, Report Says

U.S. Senate

For-profit colleges are raking in federal education money for military veterans, according to a U.S. Senate report.

Our colleagues at StateImpact Indiana have the details.

A United States Senate study committee found that for-profit colleges are collecting nearly a quarter of all funds issued to veterans for education.  According to the study, for-profit colleges benefited from more than one billion dollars in G.I. Bill money last year. That’s compared to a total distribution of just over four billion dollars.

University of Phoenix alone profited off of the G.I. Bill to the tune of nearly $210 million.

This may be the result of aggressive marketing campaigns which target veterans looking for affordable professional training.  In fact, the report points to several cases where this may be the main reason students are attending the school.

These institutions have been plagued for years by concerns over high drop out rates and lack of transparency in reporting performance data.

Florida is one of a handful of states that has joined a lawsuit alleging for-profit schools illegally paid commissions to recruit students.