FEASTING AT THE FEDERAL TROUGH: 8 For-profit universities shared more than a billion bucks in veterans' benefits

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FOR IMMEDIATE RELEASE Contact: Justine Sessions / Kate Cyrul
September 22, 2011 202-224-3254

New Data on Post-9/11 G.I. Bill Benefits Show Disproportionate Share of
Taxpayer Dollars Going to For-Profit Colleges with Concerning Outcomes

Federal taxpayers are making a huge investment in educating our Iraq and Afghanistan veterans through the
Post-9/11 G.I. Bill. In the 2010-2011 academic year, the Department of Veterans Affairs disbursed $4.4 billion
in benefits to 5,985 institutions. 1 In order to ensure that veterans are receiving the opportunity for success that
they have earned it is important to understand where these taxpayer investments are going and the track records
of the schools that are profiting most from this largesse. New data obtained from the U.S. Department of
Veterans Affairs and analyzed by the majority staff of the U.S. Senate Committee on Health, Education, Labor,
and Pensions reveal a stunning increase in the amount of Post-9/11 G.I. Bill benefits going to for-profit colleges
– an amount out of proportion to the number of students at those schools. Following are some key findings
from the data analysis.

A Disproportionate Share of Valuable G.I. Bill Dollars is Being Paid to Expensive For-Profit Schools with
Dubious Outcomes

Overall, eight of the ten biggest recipients of Post-9/11 G.I. Bill funds are for-profit companies. [Chart 1].
The Apollo Group, Inc. (which runs the University of Phoenix) had the largest share, taking in $210 million in
federal G.I. Bill funds last year. Education Management Corporation, principally owned by Goldman Sachs2
and currently facing a civil fraud lawsuit joined by the U.S. Department of Justice,3 took in $173 million in
Post-9/11 G.I. Bill funds last year alone. Together, the for-profit schools in the Top-10 collected $1 billion
Post-9/11 funds, almost one-quarter of the total disbursed. A full 20 percent of all the Post-9/11 G.I. Bill
benefits went to just five for-profit companies. Indeed, only two public state university systems were among
the Top-10. The entire University of Maryland system (which includes the primarily online military-oriented
school, UMUC), was the 8th highest recipient, receiving $51 million, and the entire University of Texas system,
receiving $45 million was the 9th highest. The huge University of California system and California State
systems ranked 18th and 19th by comparison.
More: http://harkin.senate.gov/documents/pdf/4e7b5d0253b75.pdf