Lawmaker: Close GI Bill ‘Loophole’ That Benefits For-Profit CollegesJune 23, 2019 | :
by Patricia Kime
On the 75th anniversary of the GI Bill, freshman U.S. Rep. Donna Shalala, D-Florida, is taking aim at for-profit colleges, introducing a bill Wednesday that would close a loophole she says props up substandard schools that view veterans as “cash cows.”
Shalala’s proposed “Defending all Veterans in Education Act,” or DAVIE, would change what is known as the 90/10 rule, which allows for-profit colleges to receive federal student aid if they generate at least 10 percent of their revenue from sources other than federal dollars. The bill would change the requirement to an 80/20 ratio.
It also would make schools count GI Bill benefits as federal dollars. Currently, GI Bill payments are not counted as federal monies in the calculations, allowing for-profit schools to include them as contributing to the 10 percent requirement.
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