Bill first step to curbing abuses

President Obama's high-profile signing Friday of an executive order to protect Post-9/11 GI Bill users from predatory practices of for-profit schools is viewed by veterans' service organizations as a big step, but also a first step, toward curbing abuses within the U.S. education industry.

Before grabbing his signing pen, the president warned an audience of soldiers and service families at Fort Stewart, Ga., of "bad actors out there" who aggressively market substandard education plans to veterans and service members who have valuable GI Bill benefits and tuition assistance dollars.

"They'll say you don't have to pay a dime for your degree but once you register, they'll suddenly make you sign up for a high interest student loan," Obama warned in his speech. "They'll say that if you transfer schools, you can transfer credits. But when you try to actually do that, you suddenly find out that you can't ... They're trying to swindle and hoodwink you. And today, here at Fort Stewart, we're going to put an end to it."

Not quite all that, say veterans' education advocates. Though they praise the White House for using existing executive authorities to better protect military and veterans' education benefits, vet groups say the job won't be done until harder-won corrective legislation is passed. The executive order also serves to draw new attention and momentum to that effort.

The order reflects many initiatives veterans groups have been pushing for since January, which also has resulted in a variety of new bills being introduced before the White House raced into the lead. The order directs the departments of Defense, Veterans Affairs and Education to establish "principles of excellence" for educational institutions targeting the military community to "strengthen oversight, enforcement and accountability."

The order notes that some schools have recruited veterans with "serious brain injuries or emotional vulnerabilities" without providing academic support or counseling. Some have pushed veterans into costly institutional loans rather than cheaper federal loans. Others refuse to disclose performance data such as graduation rates.

To address these issues, the executive order requires:

MORE TRANSPARENCY — To accept GI Bill or military tuition assistance money, schools will have to provide applicants with completed "Know Before You Owe" financial aid forms developed by the Consumer Financial Protection Board and Department of Education. The forms show tuition and fees, availability of federal financial aid, estimated student loan debt upon graduation and "outcome" measures like graduation rates.

The VA will post on its website a list of schools receiving GI Bill benefits that agree to adhere to these requirements. New legislation would be needed to punish non-compliant schools more effectively, officials said.

INSTALLATION BAN — DoD will set new rules for allowing educational institutions to gain access to military bases, banning those found to have used deceptive recruiting or marketing practices.

CURB MISLEADING ONLINE RECRUITING — VA is seeking trademark protection for terms like "GI Bill" and "military-friendly" to prevent for-profit schools from using them on what appear to be government-endorsed websites that lure enrollees.

VETERANS' COMPLAINT SYSTEM — VA, DoD and the education department will create a centralized complaint system for students using military and veterans' educational benefits.

IMPROVED SUPPORT — Colleges participating in military and veterans' education must do more to meet student needs, providing them with clear educational plans, academic and financial aid counseling, and improving their ability to re-enroll, or get refunds, if they leave for service-related reasons.

Tom Philpott can be contacted at Military Update, P.O. Box 231111, Centreville, Va. 20120-1111, or by e-mail at:

[email protected]