Nearly 800,000 veterans and family members every year use Post- 9/11 GI Bill benefits through Department of Veterans Affairs (VA). The GI Bill benefits program is the VA’s largest education- assistance program, covering expenses for military veterans and eligible dependents including tuition, fees, housing, and books. For-profit education accepts billions of dollars annually through the program, but several recent cases of program abuse have received much-deserved media and public attention, as they involved for- profit institutions targeting veterans and military families with erroneous, deceptive, and misleading enrollment practices.
Following a 2016 bench trial, a Minnesota state district court found that Globe University and Minnesota School of Business violated state consumer protection laws and engaged in multiple fraudulent practices by exaggerating the career eligibility and value of certain degrees. Twenty-four students testified against the for- profit institutions, detailing various misleading and fraudulent representations by counselors and admissions representatives. Six of the twenty-four students who testified for the State were military veterans, and the court’s factual findings highlighted the tens of thousands of dollars in GI Bill benefits used by veterans and squandered by the schools. In December 2016, the Department of Education withdrew funding under the federal student loan program from Globe University and Minnesota School of Business; without access to the expansive federal-financial-aid program, this action effectively foreclosed the schools from continued operation. Unbeknownst to many students though, the Department of Education’s action had no impact on either school’s access to GI Bill funds because, pursuant to federal law, the VA retains sole authority to withdraw GI Bill funding from educational institutions and training programs. How a school remains eligible for GI Bill funds following an effective closure by the Department of Education illustrates significant gaps in the VA’s management of the GI Bill program and its protection of students.
Enforcement actions throughout the United States similar to those taken against Globe University and Minnesota School of Business are far too common in recent years. The Obama Administration sought to curb many of these abuses with more stringent regulations on for-profit educational institutions receiving federal financial aid and GI Bill funding, but some industry experts speculate that a Republican-controlled Congress will likely ease many of these regulations.
This article examines the breadth of abuse and attacks by for- profit education on veterans and the GI Bill and recommends several action steps for the VA to combat erroneous, deceptive, and misleading practices. Part II frames the problem by highlighting several statistics on the Post-9/11 GI Bill program, the current legal and regulatory framework, and a survey of recent enforcement actions at the state and federal levels. It also discusses the roles and responsibilities of veterans and family members, non-profit and public education, and the higher-education lobby. Part III provides several recommendations for the VA to enhance transparency of information, strengthen oversight of financial aid, and protect student veterans and military families using GI Bill benefits. These action steps will ultimately restore the legitimacy of an essential benefit for our nation’s veterans and military families.