Obama Order Targets Student Loan Pitches to Veterans
April 27, 2012
President Obama will sign an executive order on April 27 to stop predatory practices that target veterans, service members, and their families, White House officials said. After passage of the Post-9/11 GI Bill in 2008, there have been reports of deceptive practices by some for-profit career colleges. Some allegedly recruited veterans with serious brain injuries and emotional vulnerabilities who did not have appropriate academic support and counseling. Other institutions steered service members and veterans to expensive student loans instead of encouraging them to apply for federal aid. Under the executive order, the Department of Veterans Affairs will be directed to notify schools in the GI Bill program that they must provide students with a federal form called “Know Before You Owe.” The document describes information such as federal financial aid. The executive order also directs the VA to register the term “GI Bill,” as some lawmakers and veterans advocates have complained that some businesses use words in their Web addresses that falsely imply that they are government-sanctioned. The VA and the Defense Department also must work with other federal agencies to create a centralized system for service members and veterans to register complaints.
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