Congress Eyes GI Bill Loophole: Will It Put Vets Back in the Crosshairs?
A quiet move in Congress could soon have major consequences for veterans using their GI Bill benefits — and the red flags are flying high.
As part of a broader reconciliation package making its way through the House, a small but dangerous provision has surfaced: the repeal of the 90/10 rule. For veterans who’ve faced predatory schools, worthless degrees, and drained education benefits, this could be a step backward in the worst possible way.
What Is the 90/10 Rule?
In simple terms, the 90/10 rule was designed to protect veterans and taxpayers by capping the amount of federal funding for-profit colleges can receive. Under the rule:
- For-profit schools must receive at least 10% of their revenue from non-federal sources.
- This encourages them to prove market value by attracting private-pay students — not just gaming government benefits.
However, GI Bill funds weren’t initially counted as “federal dollars.” So, shady schools often targeted veterans aggressively, treating their benefits like easy money — and leaving many with crushing debt, no degrees, and few job prospects.
That loophole was finally closed in 2021, after a decade of advocacy.
Now, it’s back on the chopping block.
What’s Happening Now?
The proposed change would once again exclude GI Bill and other military education benefits from the 90% cap — essentially reopening the loophole that allows low-performing, for-profit institutions to exploit veterans for tuition cash.
“Repealing the 90/10 fix would be a betrayal of veterans who’ve already been scammed once.”
~ Carrie Wofford, President of Veterans Education Success
If passed, schools could once again claim to meet the 90/10 threshold — but only because they aggressively target GI Bill recipients as their main funding source. This isn’t just a numbers game.
It’s a veteran exploitation strategy, and it’s been done before.
Source: Military.com – Advocates Warn Repeal of 90/10 Rule Could Hurt Veterans
Why This Matters for Disabled Veterans
Disabled veterans are often top targets for predatory schools:
- Many qualify for full GI Bill benefits
- Some face physical or cognitive challenges that make in-person verification harder
- Others may be seeking quick retraining or remote options — prime bait for scammy “career schools”
The financial and emotional toll of being misled can’t be overstated. A bad education decision can delay employment, exhaust hard-earned benefits, and erode trust in the very system that’s supposed to serve veterans.
A Look Back: What Went Wrong Before
Before the 2021 fix, veterans were routinely:
- Enrolled in non-accredited programs
- Pressured into degrees that didn’t qualify for licensure
- Lured by flashy ads and false job placement stats
- Given useless credits that couldn’t transfer
- Left with empty promises — and empty wallets
This isn’t theoretical. It’s documented history. Institutions like Corinthian Colleges, ITT Tech, and others were eventually shut down, but only after years of damage had already been done to thousands of veterans and their families.
What Can You Do Right Now?
- Contact your lawmakers: Let them know veterans are watching. Tell them to oppose any repeal of the 90/10 fix. Find your representative
- Use reputable school finders like VA’s WEAMS Institution Search before enrolling.
- Talk to a VSO (Veteran Service Officer) about your educational plans. They can spot red flags before you commit.
- Report shady schools to Veterans Education Success or FTC.gov.
Final Thoughts …
It took years of advocacy to close the GI Bill exploitation loophole — and just one line in a reconciliation bill could undo it all.
Veterans, especially disabled veterans, deserve education options that serve their future, not schemes that line pockets.
If Congress reopens the door to predatory schools, we’re not just failing veterans — we’re repeating a preventable mistake. And this time, we know better.
Stay alert, stay informed, and speak up.
Your benefits — and your future — are worth protecting.
