TitleExempt Veterans' Benefits from the 90/10 Rule Calculation for For-Profit Educational Institutions

Description

Amend the Higher Education Act to exclude veterans' benefits from the 90% cap on federal education funding.

Submitting State

Mississippi

Business Case

The 90/10 rule of the Higher Education Act limits for-profit institutions from obtaining over 90% of revenue through federal funding. The American Rescue Plan Act (2021), a $1.9 trillion COVID-19 relief package, amended this rule to include veterans’ educational benefits such as the Post-9/11 GI Bill and Federal Tuition Assistance (FTA) within that 90% calculation, a change previously unsuccessful as standalone legislation (Congress.gov, 2021; GovInfo, 2021). While intended to address predatory practices, this modification adversely impacts veterans by restricting educational opportunities and transferring financial burdens onto them. Veterans typically enroll in programs aligning closely with their earned educational benefits, aiming to minimize out-of-pocket costs. Counting veterans’ benefits toward the federal funding cap forces for-profit schools, many offering specialized programs and flexible schedules ideal for veterans, to limit veteran enrollment or raise tuition, effectively reducing veterans' access to higher education (Veterans Education Project, 2021; CollegeRecon, 2021). To truly protect veterans, legislators should consider alternative accountability measures, such as enhancing institutional accreditation processes. Strengthened accreditation would safeguard veterans’ interests without imposing unintended financial hardships or narrowing their educational choices.

Recommendation

The Enlisted Association of the National Guard of the United States urges Congress to amend the Higher Education Act to exempt veterans' benefits from the calculation of the 90% cap on federal funding that for-profit educational institutions can receive. Instead, we recommend that legislators identify and implement alternative measures to hold educational institutions accountable for their degree program quality and financial practices, such as being more diligent with the accreditation process, without shifting additional financial burdens onto veterans.

References

https://veteranseducationproject.org/wp-content/uploads/2021/02/Veterans-Education-Project-Research-Study.pdf, https://www.govinfo.gov/app/details/PLAW-117publ2