A group of U.S. senators on Thursday proposed legislation that would make it harder for for-profit colleges to enroll substantial numbers of veterans and active-duty members of the military without running afoul of federal financial aid rules. For-profits can collect up to 90 percent of their revenue from federal financial aid, but student payments from the Post-9/11 G.I. Bill and the Department of Defense's tuition benefit program do not count toward that amount. The new bill, introduced by Sen. Tom Carper, a Democrat from Delaware, would change the formula and count that revenue as federal dollars. Rep. Jackie Speier, a California Democrat, introduced a companion bill in the U.S. House.
The proposed legislation follows a similar bill, introduced last month by Sen. Dick Durbin, an Illinois Democrat, that would reduce to 85 percent the amount of federal aid revenue for-profits can receive, and also count military tuition aid toward the federal side of the equation. Both bills face long odds, due to Republican opposition and the legislative doldrums of a presidential election season.