07.31.15

Durbin, Senators Call on Defense Department to Disclose For-profit College Investigations

[WASHINGTON, D.C.] – U.S. Senator Dick Durbin (D-IL) and 12 other Senators joined today in calling on the Secretary of the Department of Defense (DOD), Ash Carter, to publicly disclose information about federal and state investigations or lawsuits against schools – including for-profit colleges – that participate in the department’s Tuition Assistance (TA) program.

   

“Publicly traded companies are required to provide information on investigations and lawsuits in filings with the Securities and Exchange Commission.  It’s only fair that information available to these companies’ shareholders also should be available to servicemembers deciding where to use their Tuition Assistance benefits,” the Senators wrote.

   

In Fiscal Year 2014, more than 341,000 servicemembers participated in the DOD’s TA program, at a cost of $538 million. 

   

“The Department’s Tuition Assistance Program is a valuable resource for servicemembers to qualify for promotions during their service and for a good job after their service is complete,” the Senators continued.  “This is all the more reason we have to ensure that servicemembers are not being exploited by unscrupulous or poor quality schools and that taxpayer dollars are not being wasted.”

   

Senators signing on to today’s letter include: U.S. Senators Jack Reed (D-RI), Richard Blumenthal (D-CT), Barbara Boxer (D-CA), Tom Carper (D-DE), Chris Coons (D-DE), Tammy Baldwin (D-WI), Debbie Stabenow (D-MI), Ed Markey (D-MA), Sherrod Brown (D-OH), Al Franken (D-MN), Elizabeth Warren (D-MA) and Chris Murphy (D-CT). 

   

Text of the letter is below.

   

Dear Secretary Carter:

   

We urge you to provide public information to servicemembers about federal and state investigations or lawsuits against schools that participate in the Department of Defense’s (DOD) Tuition Assistance (TA) Program.

   

            The Department’s Tuition Assistance Program is a valuable resource for servicemembers to qualify for promotions during their service and for a good job after their service is complete.  In Fiscal Year 2014, more than 341,000 servicemembers availed themselves of this program, which cost taxpayers $538 million.  This is all the more reason we have to ensure that servicemembers are not being exploited by unscrupulous or poor quality schools and that taxpayer dollars are not being wasted.

   

During the Senate’s recent consideration of the National Defense Authorization Act, we supported an amendment (#1704) that would have required the Department of Defense to provide information on state and federal investigations and lawsuits against schools to servicemembers through existing tools like “Tuition Assistance DECIDE.”  The amendment was endorsed by the American Legion, Military Officers Association of America, Iraq and Afghanistan Veterans of America, Veterans Education Success, VetJobs, VetsFirst, The Institute For College Access and Success, Young Invincibles, American Federation of Teachers, and the National Association of College Admission Counseling.

   

There was not an opportunity to take up this amendment during Senate consideration, but the Department could implement this important improvement without legislation.  We ask that DOD ensure that any online consumer tool it offers to servicemembers regarding specific post-secondary educational institutions include information on pending investigations and civil and criminal actions against an institution by Federal agencies and State attorneys general to the extent the information is publicly available.  In obtaining this information, DOD should consult other Federal agencies and State attorneys general, as practicable. 

   

Publicly traded companies are required to provide information on investigations and lawsuits in filings with the Securities and Exchange Commission.  It’s only fair that information available to these companies’ shareholders also should be available to servicemembers deciding where to use their Tuition Assistance benefits.  In addition, DOD should consult with the Department of Education, Consumer Financial Protection Bureau, and servicemember and consumer advocates to ensure the information is presented in a way that is most useful and effective for servicemembers.

   

Thank you for your consideration of this request and for your efforts to protect servicemembers and taxpayer dollars.

   

                                                                                    Sincerely,

   

cc: Arne Duncan, Secretary of Education

      Robert McDonald, Secretary of Veterans Affairs