For-Profit Colleges Preying On Returning Veterans


Report: For-Profit Colleges Preying On Returning Veterans

On November 17, 2012, the Merced Sun-Star reported fears that for-profit colleges preying on returning veterans using the Post-9/11 GI Bill are all too real.  The author believes the GI Bill is problematic because GIs are viewed merely as “dollar signs in uniform.”

For-profit colleges are eager to sign up veterans because it allows them to count the federal funding coming from the government as separate.  Under federal regulations, for profit schools must demonstrate to the Department of Education that at least 10 percent of its income comes from sources other than Department of Education federal financial aid.  Despite the funding being “federal” in nature, because the GI Bill funding does not come directly from the Department of Education, for-profit schools are allowed to count this funding as separate which helps them meet their mandate that at least 10 percent of its income comes from sources other than Department of Education federal financial aid.

Due to for-profit colleges’ network of more than 35,000 recruiters (10 times the number of job and career counselors employed by universities), veterans should be on the lookout for high pressure sales tactics used by for-profit colleges looking to meet their 10 percent mandate of income coming from other sources.

According to the article, for-profit colleges “have been known to recruit at Wounded Warriors centers and at veterans’ hospitals, where they can corner bedridden GIs and entice them with promises of free education and more.”  The author also point out that for-profits colleges will also likely try to temp veterans with a $684 “housing” allowance that goes straight to the veteran, despite if the veteran attends an online college or the school does not have a real campus.  Money going straight into your pocket is a hard offer to refuse.  However, the amount of debt the veterans will take on to attend these schools should be taken into consideration.

To learn more about whistleblowing and for a free confidential consultation, contact Eric Young at Young Law Group today at (800) 590-4116 or email to


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