The report, released Wednesday, found that because of a controversial “loophole” almost all of those schools are allowed to exceed existing federal funding limits that prohibit schools from deriving more than 90% of their annual revenue from federal aid. Schools are generally required to derive the remaining 10% from private sources, but that limitation—known as the 90/10 rule—does not currently apply to funding from the Department of Veterans Affairs and the Department of Defense. If it did—as the Department of Education has recommended—about 200 for-profit colleges would be out of compliance, the new report found.
The report also found that 17 of the schools were out of compliance with the existing rules.
The Department of Education and other politicians have argued that the loophole has led for-profit colleges to target veterans and servicemembers in order to receive government funding while still meeting the requirements of the 90/10 rule.
“These benefits were created in recognition of the selfless sacrifices made by our veterans and servicemembers, not to make them a target for predatory businesses,” Secretary of Education John King Jr. said in a statement Wednesday.
The Department of Education, under the Obama administration, has cracked down on for-profit colleges. The agency recommended that the funding limit apply to all federal education programs, including veteran aid. It also proposed that the 90% limit be decreased to 85%—a change that would bring the number of out-of-compliance institutions to 563.
- 2022 Time100 NEXT: TIME’s List Of Emerging Leaders Who Are Shaping the Future
- Industrial Farming Causes Climate Change. The ‘Slow Food’ Movement Wants to Stop It
- What Reading 220 History Textbooks Taught One Scholar About Racism in America
- Artist Oliver Jeffers Wants to Paint the World Out of a Corner
- A Vibrant North Korean Community in London Finds Its Days Are Numbered
- COVID-19 Vaccines Can Make Periods Longer, Study Says
- Column: What Happened When My Entire Family Came Out
- How DeSantis Handles Hurricane Ian Will Shape His Political Future
- 6 Groups Making Mental Health Care More Accessible to People of Color