WASHINGTON, D.C. — Today, the Senate Health, Education, Labor, and Pensions (HELP) Committee released data which revealed that education benefits administered by the Department of Defense for active-duty servicemembers and their dependent family members were disproportionately distributed to for-profit colleges.
In response, Holly Petraeus, who leads the Office of Servicemember Affairs at the Consumer Financial Protection Bureau, highlighted the impact of the “90-10” rule, which allows for-profit colleges to count military education benefits to meet the 10% requirement for revenue from non-federal sources.
Petraeus said the following:
“The information released today by the Senate HELP Committee reaffirms that there is a far-from-level playing field when it comes to college recruitment of students who use military benefits. A small number of for-profit colleges with large marketing budgets are scooping up the lion’s share of military students. Not-for-profit schools often cannot compete with that kind of marketing, even though they may offer an excellent education at a lower price.
Servicemembers and veterans need clear information to make a good decision about where they will spend their military education benefits. Too often, I hear that some for-profit schools with aggressive marketing machines are leading military students to big student-loan debt, rather than career advancement.
I appreciate the HELP Committee’s continued attention to this issue.”
The Consumer Financial Protection Bureau (CFPB) is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit www.consumerfinance.gov.