In 2012, the United States Congress—prepared by the Committee on Health, Education, Labor, and Pensions United States Senate—published their report, “For Profit Higher Education: The Failure to Safeguard the Federal Investment and Ensure Student Success,” investigating how for-profit colleges where targeting and preying upon civilian and military students seeking a higher degree.
You can read the full report and supporting finders at Veterans Education Success, a nonprofit veterans organization dedicated to addressing the Senate’s 2012 findings.
The investigation found a critical mass of for-profit colleges were offering sub-standard curriculum, inadequate student support programs, and even deceived students into withdrawing high interest rate student loans. It also found that between 2009-2011, of the top 10 school systems receiving Post 9/11 GI Bill Benefits, 8 were for-profit institutions, all with significantly higher Bachelor’s degrees withdraw rates (up to 68%) compared to the 2 nonprofit universities.
How is this legal? I have no idea.
In fact, in 2012, 38% of all Post 9/11 Gi Bill funds and 50% of all DoD Tuition Assistance funds went to for-profit universities. In 2014, the trends got even worse.
While all universities need your tuition money to survive, for-profit schools were specifically created for this purpose. They understand your educational benefits probably better than you do and they built an entire business model around it. The principle objective of any business is, after all, to make money. How is this legal? I have no idea.
All public universities in the United States are inherently nonprofit, primarily funded by state governments. There are also several, legitimate private, universities—in fact some of the best in the nation are private, nonprofits—which benefit from all the tax advantages of a 501(c)3 nonprofit organization designation.
Some for-profit schools even have chosen a name to imply an association with the military.
By contrast, for-profit schools are companies who exist to profit off your desire to better yourself and your career—often specifically targeting you for your government-backed Tuition Assistance and GI Bill benefits. It should be noted that “not-for-profit” entities are not officially “nonprofit.” While “non-for-profits” do not earn a profit for their owners or member, they may operate for the personal benefit of their owners or members. By contrast, nonprofits 501(c)3 organizations must have, according to the IRA, a “charitable” purpose like educational, literary, scientific, spiritual, societal, or other similar cause.
According to the National Center for Education Statistics, in 2021, there were 3,646 registered public and private nonprofit postsecondary Title IV institutions in the United States. There were 2,270 private, for-profit institutions.
Some for-profit schools even have chosen a name to imply an association with the military. American Military University is an exclusively online, private, for-private entity headquartered in Charles Town, West Virginia which has no DoD-affiliation. Their marketing strategy, exemplified by their very name, is to specifically target and mislead student Veterans into believing they are a military-endorsed institution.
Their affiliate company, American Public University, is also a private, for-profit entity targeting civilian students, also headquartered in Charles Town, West Virginia.
Know there are predatory entities out there who want your education benefits.
Both American Military University and American Public University are owned by American Public University System (APUS), which is owned by American Public Education, Inc. (APEI), which–you guessed it–is also headquartered in Charles Town, West Virginia. Despite these names, all of these organizations are private, for-profit companies which have no government affiliations.
American Public Education, Inc., including American Military University, were formally investigated as part of the 2012 Senate for-profit university investigation. You can read the full findings online, “American Public Education, Inc. Summary: 2012 U.S. Senate Committee Findings + 2015 Update.”
Conclusion
Let me be clear, this is not a knock against online education. For many working Americans (and military members), online education is the only pathway to a higher education. I, myself, earned my Masters online from the pubic, nonprofit Troy University at their reduced military tuition rate of $250/credit while I was pulling alerts at Malmstrom Air Force Base, Montana.
The purpose of this post is to advise my fellow service members and Veterans who are considering their next degree. Know there are predatory entities out there who want your education benefits. They specifically tailor their marketing and recruiting to the military community and provide substandard education and services, all while earning “military-friendly” designations for their reduced rates and waived fees. Know they are not motivated by a fundamental drive to educate service members.
Tuition Assistance and the GI Bills are your benefits and entitlements, but they are still tax-payer funded. They are precious resources. Use them! But be a good steward when you do.
To learn more about nonprofit schools with reduced military tuition rates, read “18 Schools With Reduced Tuition Rates for Military Members.”
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