... Veteran,byDanielGolden,November1,2010.14Id.15Staffvisit,Clinton,Iowa,October14,2010.MarketingandRecruitingby For- Profit CompaniesEnrollmentandfinancialstatisticsfromthepastfewyearsshowatremendousgrowthofmilitaryeducationalbenefitsflowingto for- profit schools.Thisgrowthistheresultofanewfocusonmilitary-focusedrecruitingandthedevelopmentoflargerecruitingstaffsby for- profit schoolsdesignedtobringinveterans,servicemembersandtheirspouses.ArecentarticlepublishedinBusinessWeekdocumentedthattheWashingtonPostCompany’sKaplanUniversityhasamilitaryrecruitingteamcomprisedof300admissionsadvisers,financialaidcounselorsandacademicadvisers.13AccordingtoaformerKaplanrecruiterquotedinthearticle,“UnderKaplan’scompensationsystem for admissionsadvisers,veteransweremorevaluablethanactivedutyservicemembers,”and“[a]veterancounted for sevenpoints,andaservicemember for fivepoints.Aservicemember’sspousecountedthemost,10points.”14TheIowaofficesofBridgepointEducation,parentcompanyofAshfordUniversity,employshundredsofrecruitersdevotedtorecruitingmilitarypersonnel.15educationalprograms.Thiswasdesignedtoensurethatschoolswereofsufficientqualitytoattractsomestudentswhowouldpaytuition.TheHouseVeteransAffairsCommitteeatthetimedescribedthe85/15ruleas,“arealsafeguardtoassuresoundtraining for theveteran,atreasonablecost,byseasonedinstitutions”andobservedthathadtherulebeenineffectduringtheadministrationoftheWorldWarIIGIBill“considerablesavingswouldhaveresultedand...muchbettertrainingwouldhavebeenrealizedinmanyareas.”11BecauseneitherDepartmentofDefensenorVeteransAffairsbenefitsoriginatethroughTitleIVoftheHigherEducationAct,moneyreceivedthroughtheseprogramsisnotcountedasfederalfinancialaid,and,infact,canbecountedtowardstheothersideoftheequation.TheDepartmentofEducation’s90/10ruleeffectivelyconsidersDoDandVeteransfundsasnon-federalaidbyallowingthesefundstobecountedinthe10percentofthecalculation,despitethefactthatthemoneycomesfromfederaltaxpayers.12Enrollingveteransandservicemembersallows for- profit schoolstoexpandthenumberofnon-militarystudentsthattheyenroll.Ifacompanycangenerate$10millioninrevenuefromVAandDoDbenefits,theycantakeinanother$90millioninstudentloanandPellGrantfundswithoutviolatingthe90/10rule.Notonlydoesthefailuretocountmilitaryeducationalbenefitsasfederalfinancialaidsubverttheintentofaregulationfocusedonlimiting for- profit schoolsfrombeingentirelydependentonfederaldollars,itactuallyincentivizesthesecompaniestoaggressivelyrecruitandmarkettoveteransandservicemembers.GiventhealarmingrecruitmentpracticesdocumentedbytheGovernmentAccountabilityOfficeinitsAugust4,2010reporton for- profit recruiting,thisloopholemeansthatmilitarypersonnelaresought-aftertargets for recruitment.- ... Page11AClose-UpLookatIncreasingMilitaryFundsatThree For- Profit EducationCompanies Page13Conclusion Page16AppendixI:Methodology Page18AppendixII:Post-9/11GIBillFirstYearFundsReceivedby30 For- Profit Schools(August2009-July2010) Page19AppendixIII:MilitaryEducationalBenefitsReceivedby30 For- Profit EducationCompanies(2006-2010) ... 30 For- Profit EducationCompaniesContentsExecutiveSummary Page1Introduction Page3AvailableBenefits Page4WhyareMilitaryFamiliesandVeteran’sImportantto For- Profit Companies...