Report: For-profit schools making a killing on GI Bill

Originally published by pkampe on June 26, 2012

A report by CNN Money says the Department of Veteran Affairs paid out $4.4 billion to over two years with for-profit private schools collecting nearly 40 percent of that money, but just one out of four veterans left with an education.

The report says the veteran graduation rate at such schools is just 28 percent — less than half the rate at non-profit and public colleges and universities — for all students.

Their two-year analysis showed much of GI Bill funding was being spent at for-profit schools, while hundreds of millions of dollars less being used at more esteemed colleges and universities.

The GI Bill only covers up to $17,000 per year at private schools, CNN reports, but tuition at schools like the University of Phoenix and DeVry are much higher — six times higher than a community college — forcing veterans to take out student loans.

CNN reports the government has accused some schools of recruiting veterans using misleading recruiting practices.

Read more about for-profit schools getting rich from GI Bill funding

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  • John Hammack

    all schools make a profit. They may take tax dollars and pay huge salaries to professors, but they are all “for profit.” Actually I trust non-supported schools more. They are obligated to produce a good product or lose customers. Also, they are heavily watched by the Department of Education to be sure they are honest.
    As a veteran, many of us go to specific “for profit” schools because there is something specific we want to do and those schools can get us the skills we need. If the school sucks, we simply quit attending.

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