A group of senators is pushing for a new legislation that would protect student veterans from predatory for-profit institutions.
The Protect Veterans’ Education and Training Spending (Protect VETS) Act of 2019 is the first of its kind bill introduced by Jon Tester (D-Mont.), Tom Carper (D-Del.), James Lankford (R-Okla.), and Bill Cassidy (R-La.).
The bill would fill in the 90/10 loophole and require for-profit schools to secure at least 10 percent of their revenues from sources other than taxpayers. It would require proprietary schools to provide updated 90/10 data in their annual report to Congress.
“Predatory for-profit schools are exploiting the 90/10 loophole, taking advantage of the system and our veterans,” said Tester who is a Ranking Member of the Senate Veterans’ Affairs Committee.
“Our bipartisan bill puts forward a commonsense solution that will close this loophole and hold money-grubbing institutions accountable while saving taxpayer dollars. Congress has a responsibility to put our men and women in uniform— and their benefits— first.”
The 90/10 loophole excludes the Department of Veterans Affairs (VA) and Department of Defense (DOD) education funds, like the Post-9/11 GI Bill and Tuition Assistance from being counted as federal funds allowing for-profit schools to use aggressive recruitment practices and deceptive marketing to enroll veterans.
The bill would also impose penalties on schools found in violation of the law. It will also add a caution flag to the GI Bill Comparison Tool when an institution violates 90/10.
Maine Governor Signs Bill to Protect Students from Predatory Lending
