Press Release  AG Healey Urges Greater Protections for Veterans Affected by Predatory For-Profit Schools

Boston — Looking to protect veterans victimized by the predatory practices of for-profit schools, Attorney General Maura Healey today urged the U.S. Department of Veterans Affairs to reinstate educational and vocational rehabilitation benefits already used by veterans at schools found to have engaged in deceptive behavior.

AG Healey, joined by the Attorneys General in California, Connecticut, Illinois, Kentucky, New Mexico, Oregon, and Washington, sent a letter to VA Secretary Robert McDonald asking him to use his authority to allow affected veterans to use the G.I. Bill and Vocational Rehabilitation and Employment (VR&E) benefits again and take steps to ensure that veterans are given accurate information about the risks associated with using their benefits at certain schools, particularly those that have been subject to investigations or lawsuits.

G.I. Bill and VR&E benefits are a finite resource for veterans that can only be accessed once. Many student veterans – who were specifically targeted by the for-profit school Corinthian Colleges – were deceived into using some or all of their benefits to attend Corinthian’s now-defunct schools.

“Predatory for-profit schools have cheated thousands of veterans out of the hard-earned educational benefits needed to build lives for themselves and their families,” AG Healey said. “We urge the Department of Veterans Affairs to help us protect these students from future misconduct by schools like Corinthian and allow them access the benefits they deserve for their service and sacrifice for our country.”

According to the letter, veterans’ benefits should be provided when a regulatory or enforcement action is taken by the U.S. Department of Education, state attorneys general, or State Approving Agencies that oversee education and training programs for veterans, such as the Massachusetts Department of Higher Education. Relief should also be restored when a court enters a judgment against a school, or when a veteran or a group of veterans allege that an educational program or college has been deceptive or misleading.

In 2008, Congress enacted the Post 9/11 G.I. Bill making billions of dollars in educational benefits available for veterans and their families. According to the letter, under the G.I. Bill, student veterans are entitled to benefits totaling more than $21,000 per year, in addition to funds for housing, books, and supplies. Under the VR&E program, veterans with service-connected disabilities receive the job training and education, workplace accommodations, and career coaching necessary to transition into civilian employment. 

Consumer advocates and state attorneys general have observed a spike in for-profit school recruitment of veterans. According to the letter, these institutions specifically target and prey on student veterans through recruitment events using false promises of job prospects and dishonest job placement rates. Veterans often find themselves with limited to no benefits remaining, leaving them unsupported in reaching their educational and career goals.  

The attorneys general have been active in protecting veteran access to educational benefits and in preventing unfair practices relating to those benefits. 

In June 2012, the AG’s Office and 19 other attorneys general announced a $2.5 million settlement with QuinStreet for misleading military service members into believing “GIBill.com” was a government operated site that provided advice on using their benefits to enroll in colleges to earn degrees. In May 2012, the AG’s Office urged congressional leaders to close a loophole in the Higher Education Act that can harm American veterans and their families by prohibiting for-profit colleges from deriving more than 90 percent of their revenue from Title IV funding sources.

AG Healey continues to lead efforts to help students who were deceived by predatory for-profit school. The AG’s Office is currently in litigation with for-profit schools Corinthian Colleges and American Career Institute for alleged unfair and deceptive practices. The AG’s Office reached settlements worth more than $6 million with four additional for-profit schools in Massachusetts – Kaplan Career Institute, Lincoln Tech,Sullivan & Cogliano and Salter College. In November, AG Healey announced action against student debt relief companies and the launch of a Student Loan Assistance Unit to assist borrowers who are having trouble paying their student loans. Last week, AG Healey sued Hosanna College of Health over allegations that it operated without a license and misrepresented its training programs, leaving dozens of students in Massachusetts without promised careers in nursing.  

Students looking for more information or assistance should visit the AG’s Student Lending Assistance page or call the Student Loan Assistance Unit Hotline at 1-888-830-6277.

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