Federal Law prohibits proprietary colleges from receiving more than 90% of its revenues from federal aid. This is known as the 90/10 rule. However, the law does not list Post 9/11 GI Bill education fuding or military Tuition Assistance funding received by colleges as federal aid largely because these aid programs did not exist when the 90/10 rule was enacted. This enables colleges, who otherwise might exceed the 90% limit from Pell Grants and federal student loans, to legally target and receive unlimited aid funding from Post 9/11 GI Bill and Tuition Assistance without crossing the prohibited threshold. This has triggered extremely aggressive recruitment by colleges of military and veteran students in order for the colleges to stay in compliance with the 90/10 rule.

This has resulted in extremely harsh results for many of our veterans and military members. According to the Senate HELP Committee, education costs at for profit colleges is more than twice that of public colleges. Moreover, more than half of the enrolled students at for profit colleges do not graduate after using significant portions of their GI Bill or Tuition Assistance benefits. They also incur significant debt with bleak job prospects having no employment generating degrees to show for the money and time spent.

In many cases for profit colleges spend more on recruiting and marketing than education. Two major accredited for profit colleges, Corinthian and ITT, closed recently after the Department of Education barred them from receiving any federal aid money because of the lack of integrity of their education programs. However, others still flourish by preying on veterans and military students to stay within the 90/10 guidelines. In the 2012/13 academic year, for profit schools received $1.7B in Post 9/11 GI Bill funding.

Listing Post 9/11 GI Bill aid and Tuition Assistance as federal aid in the 90% calculus of the 90/10 rule would help curb for profit colleges aggressive marketing tactics targeting veterans and military members by requiring those schools to compete in the education market place for tuition dollars from sources other than from the Post 9/11 GI Bill or Tuition Assistance programs in order to remain in compliance.

List Post 9/11 GI Bill and military Tuition Assistance funds paid to for profit colleges as federal aid for purposes of applying the 90/10 rule that prohibits for profit colleges from receiving more than 90% of its revenues from federal aid.