ANNAPOLIS, Md. — Lawmakers are looking at a bill that might help veterans with college. They say there is a loophole in a college tuition program allowing for-profit colleges to take advantage of loans given to veterans.
We've gone over and fought for GI bill benefits but we shouldn't have to come back and fight for a quality education. That's what some law makers want to change.
Right now, colleges and universities need 10 percent of their revenue to come from private sources. The rest can come from things like federal student loans. But unlike federal student loans, money from the GI Bill doesn't county towards that other 90 percent for colleges and universities.
The concern is for-profit institutes take advantage of this loophole and in essence become 100 percent federally funded. Because of that, they're able to stay afloat even if they have don't provide needed resources to students like counseling, tutoring or job placement advice.
"It doesn't allow them to get away with no one contributing to the cost of education but the government," said Senator Pinsky.
Lawmakers say some for profit colleges aggressively seek veterans because they know the government gives them money to use for college and allows the college to boost revenue.
Currently no other states have plugged this loop hole in the federal law. Maryland is trying to do just that by making the GI Bill count as a federal loan.