Combating unscrupulous practices
We've all seen their ubiquitous television commercials - the for-profit colleges that market heavily to military families.
What's the problem?
Veterans and military families have complained they have been defrauded and misled by for-profit schools that target their GI education benefits.
Federal student financial aid accounts for up to 90 percent of for-profit college revenues.
Some for-profit schools spend more on recruiting than on instruction. A U.S. Senate study of 15 of the largest publicly traded for-profit educational companies found they spent a combined $3.7 billion annually on marketing and recruiting. The study also revealed for-profit schools on average have lower success rates than traditional nonprofit public and private colleges. Among those who enrolled at 10 of the largest for-profit chains in 2008-2009, 54 percent had quit by 2010.
President Obama spoke to young soldiers at Fort Stewart, GA. Addressing fraudulent marketing and recruiting practices, the President said, "they don't care about you...they care about your cash... They're trying to swindle and hoodwink you."
Pointing out what he called "one of the worst examples," Obama said a for-profit college recruiter enrolled Marines with brain injuries who couldn't even remember what courses they had signed up for. "That's appalling, that's disgraceful."
What's the solution?
President Obama has signed an executive order adding new protections for military service members.
Plans to trademark the term "GI Bill" will help prevent the current deceptive military-themed websites that appear to be government-run or connected to the GI Bill benefit system.
The VA and DoD will be required to improve oversight of improper recruiting practices.
Holly Petraeus (wife of David Petraeus, the four-star general and current CIA Director) is the Assistant Director of the recently created Consumer Financial Protection Bureau (CFPB.) She has been charged with helping the military and their families make better informed decisions concerning financial products and services. Also, the CFPB will serve as a centralized complaint system for military/veterans.
This year voluntary, next year required, schools will participate in the "Know Before You Owe" program. A system that allows students to calculate the true cost of tuition and fees.
The Student Veterans of America Association has applauded the President's executive order.
Look what can be accomplished when Congressional dysfunction isn't in the way.
Richard O. Schwab was formerly associate head of school, and middle school head, Cincinnati Country Day School. He is currently neighborhood team leader, Glendale Organizing For America Community Team (www.gofact.blogspot.com)
