This transcript is automatically generated
Talk about getting the shaft for profit colleges are misleading our nation's heroes and wasting your taxpayer dollars.
This according to our next guest who says that some private colleges are deceiving veterans -- spending their GI benefits on expensive.
And worthless education's joining me now Tom Tarantino a veteran.
And the legislative director for the Iraq at that Afghanistan veterans association Tom thanks for joining us.
Tell me how they're doing -- what's going on here.
-- -- The tragedy of this is that not every for profit school is taking -- insane amounts of tax dollars and not producing the benefit not producing Iran Iraq.
What's happening is that.
For profit colleges are specifically targeting veterans because of a loophole in the federal law.
That allows them to gain about a 125000.
Dollars of additional revenue per veteran.
Wow what what is that GI bill money -- what is that.
Right so what have -- -- you know we set up we set up some regulations to regulate for profit colleges to ensure that.
10% only 10% of their revenue has to come from consumers who actually want to pay for their product.
90% of the revenue can come from federal dollars the problem is the GI bill is considered private dollars it's not correctly identified as taxpayer dollars -- So what that means is that for every veteran a for profit school can recruit that's nine more people on federal financial -- that they can recruit -- what that does is a put a target.
On every single veterans back and ultimately is a threat to the future of the GI bill wow.
That -- that's a very big deal so.
Just -- -- is some numbers here to our audience some of the taxpayer dollars at stake in this case nine billion it took nine billion dollars educate some 600000 veterans.
And I think just -- show people what we're talking about here where the shortfall is with some of these private colleges.
When you look at the number of student loans in default the proportion it's far higher with these private education's.
13% of all college students are in loan default 47%.
The students with these private education are in default and they received 38% -- GI bill payments.
Why is it that no one has fixed this problem it seems like an obvious problem and the only people really -- -- here let's face it.
Right and then this is a huge problem and they take about 32 billion dollars in taxpayer dollars every year.
And you know what they're using it for the using it for marketing -- using -- recruiting they're using it to lobby congress.
They have given over three million dollars in the 2012 election cycle alone to members of congress.
It's nice and -- during.
Now -- -- is -- just to point out one more problem your cost of educating veterans and a public college.
Not the kind of colleges -- back about 4600 bucks in a private college like the problems we're talking about.
Over 101000 and that's the average cost -- here -- we're gonna have to leave it there thanks for coming and we'll continue to follow this story can get any changes you let us know.
We'll do thanks -- thank you.