The Post 9/11 GI Bill® benefit became effective on August 1, 2009. Since that time, the nation’s postsecondary career colleges have proudly served veterans by providing them with high quality career skills education, usually leading to a career credential. A growing number of veterans have chosen our schools because we provide them with accelerated programs, academic focus, mentorship to help along the way, and career services resulting in real jobs.
Just as the total number of beneficiaries in the Post 9/11 GI Bill® program has decreased in recent years, the total number of veterans using our schools has also decreased. In the 2012/13 academic year, our sector’s schools earned $1,703,722,468 through educational services for veterans and we served approximately 31 percent of all veterans using the GI Bill® benefit. Most recently (2019), our sector’s schools earned $1,342,586,392 through educational services for veterans and we served approximately 29 percent of all veterans using the GI Bill® benefit. The decrease in the number of proprietary schools, combined with the growth of online academic education by public and private non-profit schools explains these reductions.
There is an incorrect impression that proprietary schools dominate the use of GI Bill® benefits. A Military Times analysis of FY17 data shows that only seven of the top 25 schools enrolling veterans under the GI Bill® benefit were for-profit schools. And one of those seven proprietary schools no longer exists today.
Just as the total number of beneficiaries in the Post 9/11 GI Bill® program has decreased in recent years, the total number of veterans using our schools has also decreased. In the 2012/13 academic year, our sector’s schools earned $1,703,722,468 through educational services for veterans and we served approximately 31 percent of all veterans using the GI Bill® benefit. Most recently (2019), our sector’s schools earned $1,342,586,392 through educational services for veterans and we served approximately 29 percent of all veterans using the GI Bill® benefit. The decrease in the number of proprietary schools, combined with the growth of online academic education by public and private non-profit schools explains these reductions.
There is an incorrect impression that proprietary schools dominate the use of GI Bill® benefits. A Military Times analysis of FY17 data shows that only seven of the top 25 schools enrolling veterans under the GI Bill® benefit were for-profit schools. And one of those seven proprietary schools no longer exists today.
Academic Quality is Key
A recent 2019 GAO report, Post 9/11 GI Bill® Veterans Affected by School Closures, looked at 4-year program outcomes despite the fact the majority of schools in our sector are 2-year or less than 2-year programs. The most recent NCES data for 2017/18 academic year shows the total number of proprietary schools in the U.S:
- 488 4-year schools
- 782 2-year schools
- 1,451 less-than 2-year schools.
Even worse, the data shows a cumulative graduation rate in our sector of 22 percent - driven by large online schools with graduation rates below 20 percent.
Our membership is primarily multi-generation, family-owned schools providing exclusive on-site or blended (combination of online and on-site programs) academics. The graduation rate for CECU member schools is 59.4 percent! CECU member schools' graduation rate is almost three times higher than the 22 percent alleged in the GAO Report, and 2.5 times better than the public 2-year colleges’ graduation rate.
- 488 4-year schools
- 782 2-year schools
- 1,451 less-than 2-year schools.
Even worse, the data shows a cumulative graduation rate in our sector of 22 percent - driven by large online schools with graduation rates below 20 percent.
Our membership is primarily multi-generation, family-owned schools providing exclusive on-site or blended (combination of online and on-site programs) academics. The graduation rate for CECU member schools is 59.4 percent! CECU member schools' graduation rate is almost three times higher than the 22 percent alleged in the GAO Report, and 2.5 times better than the public 2-year colleges’ graduation rate.
Outcomes Matter – for the Veteran and the Taxpayer:
As policymakers seek to protect both a veteran’s use of their earned GI Bill® benefit and the taxpayer’s dollars, we believe the only effective way to achieve this is through a set of common outcome metrics for every program at every school. We need common definitions of such outcomes, and then we need full transparency of such outcomes. Once there is a consensus on data outcome determination, policymakers must then implement appropriate guard rails, requiring all schools to either improve poor-performing programs – or end them!
We suggest five specific outcome metrics: retention, graduation, placement in the field of study, time to completion, earnings after entering the workforce, and the average debt incurred by GI Bill® beneficiaries. A sixth important metric worthy of consideration is “Time to Completion.”
We suggest five specific outcome metrics: retention, graduation, placement in the field of study, time to completion, earnings after entering the workforce, and the average debt incurred by GI Bill® beneficiaries. A sixth important metric worthy of consideration is “Time to Completion.”
Protecting Access to Post-secondary Career Education
There are different proposals before Congress to revise the 90/10 rule to include a school’s GI Bill® benefit revenues in the calculation of a school’s ratio. (For specific bills, please refer to the “Legislation in the 116th Congress Against the Sector”.) While our opponents seek to frame this as “Closing a Loophole,” they misunderstand the GI Bill® benefit’s basic intent.
The GI Bill® benefit is a contract between the government and a servicemember. Upon completion of one’s military service, a veteran will generally receive up to 36 months of full-time education benefits.
While our sector currently enrolls approximately 20 percent of all veterans using their GI Bill® benefit, one cannot ignore the important role our schools provide in serving the academic needs of these veterans. Let’s be blunt: Many veterans do not seek a 4-year liberal arts degree! Today, many servicemembers seek to continue building on the skills they learned during their military service at one of our postsecondary career schools, leading to a job in their chosen field.
Potential Impact:
CECU engaged NDP Analytics to determine the potential impact of the various legislative proposals. They found:
Consider the cumulative impact. Over a decade, 1.8 million veterans could lose access to their postsecondary career programs. Many of these veterans seek careers in health care, technology, diesel mechanics, and beyond. The nation’s shortage of skilled workers in-demand fields would suffer, and too many veterans would be left to pursue their civilian life without the skills and credentials key to higher incomes.
The GI Bill® benefit is a contract between the government and a servicemember. Upon completion of one’s military service, a veteran will generally receive up to 36 months of full-time education benefits.
While our sector currently enrolls approximately 20 percent of all veterans using their GI Bill® benefit, one cannot ignore the important role our schools provide in serving the academic needs of these veterans. Let’s be blunt: Many veterans do not seek a 4-year liberal arts degree! Today, many servicemembers seek to continue building on the skills they learned during their military service at one of our postsecondary career schools, leading to a job in their chosen field.
Potential Impact:
CECU engaged NDP Analytics to determine the potential impact of the various legislative proposals. They found:
- Including the GI Bill® benefit in the calculation of 90/10 would result in 93 Career Colleges failing to qualify for Title IV funding and at least 113,000 veterans would lose access to their current career programs.
- Including the GI Bill® benefit in the calculation and reducing the ratio to 85/15 would result in 266 Career Colleges failing to qualify for Title IV funding and at least 158,000 veterans would lose access to their current career programs.
- Including the GI Bill® benefit in the calculation and reducing the ratio to 80/20 would result in 400 Career Colleges failing to qualify for Title IV funding and at least 185,000 veterans would lose access to their current career programs.
Consider the cumulative impact. Over a decade, 1.8 million veterans could lose access to their postsecondary career programs. Many of these veterans seek careers in health care, technology, diesel mechanics, and beyond. The nation’s shortage of skilled workers in-demand fields would suffer, and too many veterans would be left to pursue their civilian life without the skills and credentials key to higher incomes.
Veterans for Career Education
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In response to these attacks, we have created the first-ever organization of veterans advocating for career education for veterans! (Visit the VCE Section on this web site.) The organization – Veterans for Career Education – is unique in that it exclusively consists of veterans, by veterans and for veterans’ access to postsecondary career education. We share the common commitment of protecting both veterans and taxpayers. But we can only achieve such outcomes if we establish minimum outcome metrics for all programs at all schools using the GI Bill® benefits. Such minimum outcome metrics should be a condition of eligibility to participate in the VA’s GI Bill® benefit program. |