[WASHINGTON, D.C.] – Concerned about reports of some for-profit colleges aggressively targeting military personnel and veterans, U.S. Senators Dick Durbin (D-IL) and Jim Webb (D-VA) today asked the Secretaries of the Department of Veterans Affairs, Eric Shinseki, and the Department of Defense, Robert Gates, for detailed information on how veteran and military tuition assistance program funding is being spent.

Specifically, Durbin and Webb asked for data on the tuition assistance used for education at for-profit colleges and the standards in place to ensure that veterans, service members and their families are given the best possible options for higher education and that taxpayer funding is being well-spent.

“Some for-profit colleges serve VA beneficiaries [and active duty students and their families] well by offering flexible course schedules, distance learning, and course credit for military training,” the Senators wrote. “But we have heard reports that some for-profit institutions may be aggressively targeting service members and veterans, signing them up for educational programs that may bring little benefit to future employment opportunities, low graduation rates and high default rates. Finally, with the recent passage of the Post 9/11 GI Bill, which provides for tuition reimbursement, we have heard concerns about excessive tuition being charged at some of these institutions.”

In 2008, Congress passed the Post-9/11 GI Bill, hallmark legislation introduced by Senator Webb on his first day in office, to provide veterans with comprehensive educational benefits on par with the World War II-era GI Bill. More than 34,000 beneficiaries took advantage of the program in fall 2009 – the first year funding was available. Seven of the top ten recipients of Post-9/11 GI Bill funding were for-profit schools.

The United States began providing education benefits to veterans and members of the military in 1944, as part of the Servicemen’s Readjustment Act, which was the origin of the GI Bill. Many of these educational opportunities are free or at reduced cost, and offer the flexibility necessary for service members subject to short-notice, worldwide deployments. In 2009, the Department of Defense spent $424 million on tuition assistance and the Department of Veterans Affairs spent $3.58 billion.

On June 21, Durbin joined with other lawmakers in asking the GAO to assess the quality of for-profit institutions, as well as how much of their revenue is comprised of Federal student aid and other Federal funding sources. Other Senators signing on to today’s letter include: Senators Tom Carper (D-DE), Kay Hagan (D-NC), Claire McCaskill (D-MO), Russ Feingold (D-WI) and Tom Harkin (D-IA).

Text of letters below

August 4, 2010

The Honorable Robert Gates

Secretary of Defense

1000 Defense Pentagon

Washington, DC 20330-1670

Dear Secretary Gates:

We write regarding federal education support programs benefiting service members and their dependents. Specifically, we are concerned about the growing predominance of for-profit colleges and universities in these programs and the lack of information available about the quality of education provided by these institutions to active-duty personnel, dependents, and veterans.

Enrollment at for-profit colleges and universities has grown by 225% over the past ten years. Some for-profit institutions serve active-duty students and their families well by offering flexible course schedules, distance learning, and course credit for military training. But we have heard reports that some for-profit institutions may be aggressively targeting military personnel, signing them up for educational programs that may bring little benefit to future employment opportunities, and low graduation rates. Finally, with the recent passage of the Post 9/11 GI Bill, which provides for tuition reimbursement, we have heard concerns about excessive tuition being charged at some of these institutions.

We ask you to review your Department’s voluntary education programs and provide us the following:

• DoD tuition assistance expenditure data for each of the last ten years, including information on for-profit colleges that have received tuition assistance, the number of students who have enrolled at each for-profit college, and the total amount of funding disbursed to these colleges by program.
  
   
• Information regarding the standards, aside from accreditation by a Department of Education recognized agency, used to establish the eligibility of for-profit educational institutions to provide education through, and reimbursed by, DoD tuition assistance programs.
  
   
• Information regarding the standards used to establish eligibility of for-profit colleges to engage in on-base recruiting activities, including current requirements and limitations placed on colleges, regulations relating to inducements for students, including laptops or other gifts, and college counseling resources and practices.
  
   
• Information on the quality of education programs at for-profit colleges, including costs of tuition, graduation and drop-out rates, number of students for whom graduation and drop-out information is unknown, job placement rates, accreditation status of schools and programs, student loan default rates, number of students that transfer from one institution to another, and acceptance of credit transfers by other institutions of higher education.
  
   
• Information on incidents of misrepresentation or fraud on the part of for-profit colleges and any complaints regarding aggressive or deceptive marketing, poor quality coursework, unexpected costs, or inability to obtain promised employment.
  
   
• Information on the systems in place to ensure quality of academic programs as well as any examples of for-profit institutions being barred from participating in voluntary education programs because of poor class quality, fraud, or for any other reason. 
  
   

Finally, we would appreciate information regarding any program changes you or the services are considering to ensure that only quality academic institutions are involved in voluntary education programs.

Sincerely,

August 4, 2010

The Honorable Eric K. Shinseki

Secretary of Veterans Affairs

Department of Veterans Affairs

810 Vermont Ave., NW

Washington, DC 20420

Dear Secretary Shinseki:

We write regarding Department of Veterans Affairs (VA) education benefit programs. Specifically, we are concerned about the growth of for-profit colleges and universities in these programs and the lack of information regarding the quality of education provided by these institutions.

Enrollment at for-profit colleges and universities has grown by 225% over the past ten years. Some for-profit colleges serve VA beneficiaries well by offering flexible course schedules, distance learning, and course credit for military training. But we have heard reports that some for-profit institutions may be aggressively targeting service members and veterans, signing them up for educational programs that may bring little benefit to future employment opportunities, and low graduation rates. Finally, with the recent passage of the Post 9/11 GI Bill, which provides for tuition reimbursement, we have heard concerns about excessive tuition being charged at some of these institutions.

We ask you to review the Department’s education programs and provide us the following:

• VA education benefit expenditure data for each of the last ten years, including information on the for-profit colleges that have received VA education funds, the number of students who have enrolled at each for-profit college, the total amount of funding disbursed to the colleges, and how close the colleges are to meeting the federal funding threshold, pursuant to 38 U.S.C. §3680 (d).
  
   
• The VA’s efforts to monitor and oversee for-profit institutions’ access to veteran information and VA programs and facilities, including the current requirements and limitations placed on colleges, regulations relating to inducements for students, including laptops or other gifts, and college counseling resources and practices, as well as the total number of referrals made to the Federal Trade Commission pursuant to 38 U.S.C. § 3696.
  
   
• VA’s information on the quality of education programs at for-profit colleges, including costs of tuition, graduation and drop-out rates, job placement rates, accreditation, student loan default rates, number of students that transfer from one institution to another, and acceptance of credit transfers by other institutions of higher education.
  
   
• Information on the VA’s role in providing guidance and oversight over State Approving Agencies to ensure quality of participating programs as well as information on colleges or courses of study that have not been approved by the State Approving Agencies because of poor class quality, fraud, or for any other reason.
  
   
• Information on any incidents of misrepresentation or fraud on the part of for-profit colleges seeking payment for classes provided through VA education programs.

Finally, we would appreciate information regarding any program changes your Department is considering to help ensure the highest academic quality for programs using tuition assistance.

Sincerely,