In a July 2021 post on the Federal Trade Commission's consumer blog, Samuel Levine, then Acting Director of the FTC's Bureau of Consumer Protection, described how some for-profit schools have targeted active duty military personnel and veterans. The draw, according to the post, is their steady pay and education benefits, and service members moving to civilian life can be prime targets.
The University of Phoenix settlement
The post referenced the University of Phoenix, which the FTC said had used false promises to attract students. The school entered a settlement with the FTC that included refunding $50 million to students and canceling an additional $141 million in student debt.
The 90/10 loophole
The post also pointed to the “90/10 rule,” a funding rule for for-profit schools. Because military education benefits could be counted in a way that made aggressive recruiting of service members financially attractive, the rule became a factor in how some schools marketed to them.
Help is available
Service members, veterans, and other students who believe they were misled have resources for reporting and support through the FTC and related agencies. The original post is available on the FTC consumer blog.
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