Mark Takano: “If there was a loophole in Federal law that led to a waste of taxpayer dollars and abuse of servicemembers and veterans…”

“If there was a loophole in Federal law that led to a waste of taxpayer dollars and abuse of servicemembers and veterans, most of my colleagues would immediately spring into action to close that loophole and prevent waste, fraud, abuse, and the exploitation of our fellow Americans. Well, that is exactly what for-profit schools are doing right now by exploiting a loophole in the law that caps the amount of Federal revenue that schools can receive. This loophole, known as the 90/10 loophole, excludes GI Bill and DOD tuition assistance benefits from the statutory limits on Federal revenue sources a for-profit school can claim. Because of this, for-profits have used predatory tactics to aggressively recruit servicemembers and veterans, stealing their benefits and making millions in profit while providing them with low- quality education. I have heard countless stories of this exploitation as chairman of the House Committee on Veterans' Affairs. Make no mistake, I will be taking decisive action to close this loophole for GI Bill benefits recipients. But first, closing this loophole for the DOD tuition assistance program is an important step to rid these Federal programs of this perverse incentive. The DOD tuition assistance program, which pays up to $4,500 per year, has allowed servicemembers to pursue higher education at a reduced rate. Military education programs are extremely popular and have played an important role in educating millions of servicemembers.…”