Posted: 07/25/14 18:25
by Dave Mindeman
The brazenness of John Kline is incredible.
Earlier this month. legislation which would close an exploitative loophole in Federal student aid died without a hearing. Its intention was to block For-Profit colleges from violating the 90-10 rule. And what is that you ask?
At issue was the so-called 90/10 rule, which bans for-profit schools from receiving government funding if they draw more than 90% of their revenue from federal student aid programs. The rule excludes tuition assistance from the GI Bill for veterans and from the Department of Defense, which funds education for active-duty military.
The legislation proposed to include the exempted Veterans student aid in the GI bill....which has been a large amount of exploited funding in these For-Profit colleges.
One man shut it all down and allowed the For-Profit debacle to continue.
Congressman John Kline.
As Chairman of the Committee he quashed the bill by ruling it non-germane to the topic of financial aid being discussed at his July 10 hearing.
GI Bill for Student Loans -Not germane?
Here is an example of what is happening....
Critics say the loophole leads for-profit schools to aggressively target veterans to draw additional federal funding. Many analysts believe closing it would push some for-profit college chains over the 90% cap, gutting their support system. The University of Phoenix, for instance, receives 83% of its funds from federal programs, according its most recent filings with the U.S. Securities and Exchange Commission. That figure doesn't include the nearly $1 billion the company received from the post-9/11 GI Bill over the last five years.
And why is this a problem?
The (Univ. of Phoenix) San Diego campus' overall graduation rate is under 15%, according to the federal Department of Education, and more than a quarter of students there default on their loans within three years of leaving school. No one from any state or federal government agency knows how many veterans who go to school on the GI Bill graduate or find jobs.
These students and veterans are "recruited" to these campuses with promises they do not deliver. The loans are guaranteed by all of us-the US taxpayer. With those kind of default rates, we are losing huge sums of money.
And we have one person to thank for this debacle.,,,
Congressman John Kline.
FLIP THIS DISTRICT!