PBS NewsHour showcases Reveal reporter Aaron Glantz’s investigation into how the University of Phoenix – the school that receives the largest share of GI Bill money – has sidestepped an executive order banning deceptive and aggressive recruiting practices by for-profit colleges.
Eight U.S. senators are demanding that the Department of Veterans Affairs launch an inquiry into revelations that GI Bill tuition subsidies have flowed to questionable unaccredited schools.
The GI Bill does not require schools to be accredited. The loophole is meant to allow veterans to attend trade schools, but Reveal has found 2,000 schools cashing in, including ones that teach scuba diving, dog grooming and yoga.
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In 2012, President Barack Obama banned deceptive and aggressive recruiting tactics by for-profit colleges, so the University of Phoenix instead sponsors events at military bases to woo veterans – and their GI Bill money – to its educational programs.
Since January, the U.S. Department of Veterans Affairs has received thousands of complaints against various schools but has completed a review of only 324 of them, according to an internal agency document.
A never-released federal audit finds dozens of colleges are so dependent on taxpayer money that they would be violating a law designed to prevent profiteering, if not for a loophole.
California lawmakers unanimously approved legislation designed to prevent for-profit schools from preying on veterans at taxpayer expense – but not before the bill’s author removed most of its significant provisions.
Citing new information, the federal agency lifted restrictions put in place after California regulators audited the for-profit school’s San Diego campus.
The parent companies of the University of Phoenix and Art Institutes chains, as well as ITT Tech and Strayer University would be at risk of losing all federal funding if not for the exemption, according to a Senate report.
California auditors find popular academic programs at the for-profit school’s San Diego campus violate restrictions for GI Bill funding.