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For-Profits Unprofitable for GI's: Why Taxpayers Should Prohibit Use of Post 9-11 GI Bill Funding on 'For-Profit' Education

Posted: 03/10/11 12:42 PM ET

Since October 2009, Syracuse University -- with support from the National Science Foundation -- has been studying veterans' educational aspirations, with emphasis on technical fields and engineering. We have created the most comprehensive national dataset on servicepersons' educational goals and needs.

The Post 9/11 GI Bill is the largest expansion of veterans' benefits since the original post-World War II 1944 GI Bill. The 1944 bill helped make the United States a global technological powerhouse and superpower, delivered us our "greatest generation," and by its end in 1956, educated 8 million of 16 million veterans, resulting in 14 Nobel Prize winners, 91,000 scientists, 67,000 doctors, 450,000 engineers, and countless others. Although the Post 9/11 GI Bill is an investment in veterans, we as a nation reap the benefits.

Our interviews with active duty servicemembers and veterans have revealed many things: First, they are anxious about becoming students again, about whether their peers -- the average college student fresh out of high school -- can relate to their commitment to country. Second, they desire "military friendly" campuses, a cohort of veterans to relate to the hardships of being a student while being a spouse, a parent, recovering from PTSD, or making the transition back to civilian life. Third, the hostile response to veterans during recent campus debates over reinstalling ROTC programs has not inspired their confidence.

As a result, servicemembers often ask us, "Should I use my GI Bill educational benefits at for-profit, on-line schools?" We think the for-profit model can be problematic for several reasons: First, "for-profit educational management companies" use ad hoc credentialing strategies to gain market share. Second, 'for-profit' credits may not be eligible for transfer to regionally accredited schools (most traditional universities and colleges). And third, 'for profit' degrees may carry a lower market value than their nonprofit equivalents. Nonetheless, many service-members report that their first choice is to attend a 'for-profit,' a finding confirmed by a recent U.S. Senate Health, Education, Labor and Pensions Committee Report showing that nearly 30 percent of students using the GI Bill are attending 'for-profits'. Meanwhile, mounting evidence shows that although for-profit education may produce high returns for shareholders, it can subject students to increased risk of loan default, unethical recruitment practices, and higher degree costs and attrition rates.

And what about the implications for the nation? In 2010, the Department of Veterans Affairs spent $697 million on tuition at public universities and $640 million at for-profits, yet funded 203,790 students at public schools compared to 76,746 at 'for-profits.' The Senate Report also notes that government education benefits received by 20 for-profits increased from $66.6 million in 2006 to $521.2 million in 2010 - an increase of 683 percent. If the expansion of military benefits has made veterans targets for for-profits seeking to satisfy investor demands, the future U.S. economy, driven by a well-educated labor force, stands to suffer from collateral damage. It is noteworthy that no for-profit has managed to launch an accredited engineering program.

From the veteran perspective we have heard two views. On the one hand, veterans feel "taken advantage of" by for-profits and wary of the online programs they offer. The whole point of college, said one veteran, is to "interact with fellow students, engage with people of different backgrounds, take tests under pressure, experience the intangibles of personal growth and maturation that occur in a campus setting." This view sees for-profits as "making veteran isolation worse, not better." Alternatively we have heard, "my biggest gripe about the GI Bill is that I work full time, own two houses, am divorced, have two children, and have a job that requires a lot of traveling, so I'm basically forced into online courses, and the most I can do is 6 credits per semester." This view explains: "with the new GI Bill, I don't get the same housing entitlements, and I'm really not sure about the quality of these [for-profit] degrees." Clearly, credible university-based online degree programs need to be made available to veterans.

Given current U.S. fiscal constraints, we must ensure that we are getting the most out of our investments. Not only do we need to seriously reconsider whether for-profits give us the greatest return on our investment in the GI Bill, but whether they provide the quality education that our veterans deserve. The burden of Iraq and Afghanistan rests on less than 1 percent of our nation, cementing a divide between servicemember and society. The Post 9/11 GI Bill is one of our best means to ensure a strong economy and healthy middle class, while providing opportunities for citizens committed to public service. It would be a shame to allow for-profits to siphon off that potential, only to line their pockets at the expense of America's future best and brightest, and for the sake of providing a service which at best further isolates our veterans from their society and at worst undercuts the next generation of Nobel Prize winners, scholars, scientists, doctors, inventors, and engineers.

 
 
 
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01:01 PM on 03/17/2011
There are instances when I do feel that online education cannot take the place of classroom time such as chemistry or foreign languages but the majority of classes that require just reading and writing can be done online with the same effectiveness as they would be in a classroom setting.
01:01 PM on 03/17/2011
“it can subject students to increased risk of loan default, unethical recruitment practices, and higher degree costs and attrition rates.†If they are using the GI Bill they do not have to take loans for school, the GI Bill pays tuition and their housing while going to school full-time.

"interact with fellow students, engage with people of different backgrounds, take tests under pressure, experience the intangibles of personal growth and maturation.†Most of these former military personnel have matured under pressure that is greater than anything normal college students can expect to find on campus. Interaction can be done online through the chat-rooms that most of these online classes utilize. For profit schools are not the only schools using online classes. University of Illinois has many online degrees available as well as the University of Maryland University Campus.

We must also remember that public schools while non-profit have several bigger name schools that make sizeable profits off of their sports teams. As long as the college/ university is accredited they should not be viewed as inferior to any other accredited institution. Just remember no matter where you go to college at none of the institutions guarantee you a job when you graduate in a career field that requires your degree.
HUFFPOST SUPER USER
Insanity rules
03:40 PM on 03/13/2011
The author and the higher education people doesn't seem to realize that the world of education is changing. Student's don't "need" to have a grad student feeding them information, nor do they need to sit at the feet of a professor to "learn". Learning is sharing information, knowing how to access information, and how to apply it.
I don't mind that you distribute information warning people of the high costs, I do mind you telling me that I can't choose where to put the money I earned on my education.
HUFFPOST SUPER USER
Insanity rules
03:35 PM on 03/13/2011
In an effort to demonize for profit schools the writer makes some ignorant and out dated assumptions. One being that most options from private online schools is low quality, that an online course is somehow inferior and it doesn't take into consideration the mountains of research that has shown online classes are as good if not better than face-to-face courses when it comes to learning. Many good university's and schools offer quality online courses and programs. The isolation felt by students are normal at first until they realize the freedom an online class gives them. Their expectations of going to a "brick" campus is an outdated notion. Most students may want a an online school to have a campus, a "brick and click", but they are rapidly finding that online courses can solve some time problems such as work, family, or unable to drive long distance to attend a face-to-face course.

The problem with the housing allowance being tied to having to take face-to-face courses sounds a lot like some of the stupid regulations devise becasue they don't trust online learning. At my university, it took a few years to convinced admissions that online students shouldn't have to prove they have their measles shots.
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HUFFPOST SUPER USER
Candide33
I heart Bernie Sanders
08:22 PM on 03/12/2011
Um.... that explanation does not hold water.... many REAL colleges offer on-line courses ... even Harvard and Oxford have them.....

None of those scam jobs should be accredited.
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shoshannadailey
02:02 PM on 03/11/2011
The color of change organization currently has a campaign addressing abuses by for-profit schools -- this petition focuses on low-income students and is not specific to veterans. But if you want to sign it, please visit www.colorofchange.org and look under "campaigns" at the top.
12:49 PM on 03/11/2011
We need to be more proud of our soldiers. If they can't get an education after risking life and limb for our country, then something is terribly wrong in this country.
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libertarian uprising
A "living" constitution, is a dead constitution.
12:47 AM on 03/11/2011
While the article states that most vet's first choice is a for-profit, online only school, most will not make such a choice when the time comes to enroll. Under the post 9/11 GI bill, you must take at least a portion of your classes in a face-to-face setting to receive your BHA (housing allowance) this ia anywhere between $800 and $2000 a month depending on where you live.
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HUFFPOST SUPER USER
alafonse
It's definitely a crap-shoot.
07:00 PM on 03/10/2011
GI's go to any school where they think they can stay in school and get a stipend. It's a way to survive in a poor job market. They did in when they returned from vietnam too. I guess not too many remember that. A poor person does what he has to do to live, and that's all this amounts to. Just trying to stay alive and off the streets.
04:23 PM on 03/10/2011
Wall Street has found another way to rob the government...Federal Loans. Just wait for the federal loan meltdown, just like the mortgage meltdown. I saw a documentary (on PBS of course) re: for profit colleges. The main lobbyist for the colleges was asked what happens when all these students can't pay back their loans. He said the "government can do something about it." Just like TARP.

Corporate socialism is killing America.
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LoneTree
Don't shelter me from criticism.
03:05 PM on 03/10/2011
" The 1944 bill helped make the United States a global technological powerhouse and superpower, delivered us our "greatest generation," and by its end in 1956, educated 8 million of 16 million veterans, resulting in 14 Nobel Prize winners, 91,000 scientists, 67,000 doctors, 450,000 engineers, and countless others."

There's nothing to say that we wouldn't have had those benefits without the GI Bill. In reality, the GI Bill was a preemptive solution to the massive unemployment problem that would have arisen had those millions of GI's, having lived through four years of non-stop horror and without PTSD assistance or even recognition of the problem, flooded back into a job market (widely populated by women, in any case) that was quickly shrinking as war production wound down.

Oh, it was a good idea. Let's just try to keep all this in perspective and discuss the full issue.

BTW, for profit colleges and universities are anathema to a nation that endorses and supports public education. There should be no more government advantage of any type given to private colleges than is given to private primary and secondary schools.
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HUFFPOST SUPER USER
javajava
Pastafarian Liberal Progressive Socialist Hippie
02:48 PM on 03/10/2011
I did the for profit route after I discharged. I had technical training at 2 schools that no longer exsist. I got buried under a mound of debt that took years to recover from. They were Sawyer College and Masters Institute.
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HUFFPOST COMMUNITY MODERATOR
way2sunny
06:29 PM on 03/10/2011
Did you get a job based on the classes you took, or was the money wasted?
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javajava
Pastafarian Liberal Progressive Socialist Hippie
12:15 PM on 03/11/2011
I worked in IT for ten years until the dotcom bubble burst. The last 10 I have been in healthcare administration. The education was valued by me but the cost was high. All in all I guess it was a wash.
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ringmaster
retired showman from Memphis, down in Dixie
02:20 PM on 03/10/2011
Too late. One of the first things the new congress did was vote to stop Fed investigation of for profits.
09:34 AM on 03/11/2011
Just shows one what "fiscal responsibility" really means to the Tea Party Republicans. The majority of the Tea Party Republicans will never admit they were hoodwinked. That is the nature of most scammed victims. In fact, they will defend the stopping of the investigation; they will become apologists for the Republicans. Hard to imagine, but true. Compromise of ideals is so easily rationalized.
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tinsldr2
Retired Army Officer
01:52 PM on 03/10/2011
The issue should be one of credentialing and accrediting. The GI Bill must be used at an accredited University. The accreditation of the colleges should be questioned and continuously verified to make sure they are delivering a quality education.

Also, it must be remembered that High School can be years back for many Veterans. SAT scores can be old or may not have been taken. Scores themselves may have been lower if the Veteran had not planned on going to College after High School. This can make it difficult (or daunting) to get into a more selective College for many Service Members.

In my own case I graduated High School in 1981. I served several years on active Duty and used an older form of the GI Bill (called VEAP) to go to school in 1987-1992. I had to start school part time because I worked full time and had a family. Eventually I was able to transition to full time student and then decided upon graduation to return to the Army as an Officer and have since retired.

I share the authors concerns to make sure the Veterans get the best education and "bang for the buck " but the unique concerns of the Vets needs to be carefully considered.
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realitytrumpsbull
two 'alves of coconut!
01:00 AM on 03/11/2011
I'm a vet, and apparently my college benefits from 'back in the day' are once again worth something, but, I'm reluctant to use them, because I'm getting (reluctant) quotes of several hundred dollars per credit hour to study things that, bluntly put, I could probably get a basic 'handle' on all by myself using only books and the GooglerNets. And, that brings up what I believe is a very important point: Education revolves generally around one person: The student. Sure, you have your professors and various faculty and support staff, but if they didn't have a person sitting in a chair and trying to absorb all this information being presented by various means, they could pretty much close for lack of customers and operating revenue. And, it's no big secret that the industry base that once made this country something like wealthy, has started to emigrate. 

So, upon graduation, where will you be employed? The local fast food place? No degree required, there.
Back in the service? Ummm....no thanks, been there, done that, threw away the t-shirt, and I'll start my Guide To Sheltered Bridges Across North America Where You Can Get Free Food before that happens.

Maybe we'll have the Big Economic Turnaround, and, maybe we won't. But, moving on to the FAFSA plantation? Better consider that decider VERY carefully. A college degree guarantees NOTHING, and if you were a screwoff/screwup BEFORE, nothing magical about education that's going to remedy the situation. You're better off to sober up, straighten up, lace up, and get some job-specific training through local employers a la apprenticeship etc., if/where available. Not all 'education' takes place in a formalized classroom setting, either, and sometimes you end up learning more outside of such environs than you ever will inside of them.