These veterans' student loans are gone, but so are their GI Bill benefits. How that could change

When her Army career was cut short by a medical discharge in 2005, Tasha Berkhalter decided to pursue a degree that she hoped would lead to a career as an FBI agent. The now-defunct, for-profit ITT Technical Institute promised a flexible class schedule that would meet her needs as a working single mother.

Every year, hundreds of thousands of veterans use GI Bill benefits to pay for college or other educational programs. The funding is meant to be a recruitment tool, an acknowledgment of their service and a springboard to help soldiers transition back into civilian life. But for thousands of veterans, their post-military lives have been disrupted by poor experiences at for-profit colleges accused of defrauding students.

ITT closed in 2016 after the Department of Education blocked the school from admitting new students who used federal financial aid. The U.S. has provided educational assistance to veterans since 1944, when the GI Bill of Rights granted financial support to soldiers returning from World War II. In 2008, Congress passed the Post-9/11 GI Bill to boost benefits.

A network of state approving agencies, not the Department of Veteran Affairs, is responsible for screening schools that receive GI Bill funding. In 2020, Congressimposed stricter requirements on schools seeking approval to access VA educational assistance and gave the state approving agencies more power to assess them. Those provisions went into effect late last year.

A third of Post-9/11 GI Bill students attended for-profits in 2016, while only 10% of all post-secondary students did,. Between 2009 and 2017, eight of the 10 institutions receiving the most Post-9/11 GI Bill funding were for-profits. ITT Technical Institute, the third-highest recipient, received $1.15 billion, adjusted for inflation, between 2009 and 2016, according to the report.

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