Obama targets fradulent loan marketing aimed at military
April 27th, 2012
10:41 AM ET

Obama targets fradulent loan marketing aimed at military

President Obama wants to crack down on for-profit colleges his administration says deceptively recruit post-9/11 veterans with false promises of lucrative careers.

The president will travel to Fort Stewart in Georgia Friday where he will unveil a new executive order aimed at forcing schools to be more transparent in their recruitment and marketing efforts.

While 9/11 GI Bill federal loans can be used at private, public, and for-profit schools alike, a recent Senate Committee report found eight of the ten largest recipients of GI Bill loans are for-profit schools. According to the report, for-profit colleges heavily recruit ex-service members with misleading military-themed websites that falsely suggest the federal funds can only be used at their schools. The Senate report also found the average dropout rate at these schools hovers around forty percent.

In the Executive Order the president will announce Friday, all schools who market to veterans will be required to be more transparent about the educational opportunities they provide and likely career placement outcomes. The Department of Defense will also be tasked with setting forth rules on how schools are permitted to recruit service members on military bases while the Department of Veterans Affairs will crack down on the school’s deceptive websites specifically targeted to military members.

The executive order also mandates better financial aid and academic advising to enrolled veterans and a centralized complaint system for veterans who feel their school has defrauded them.

Legislation targeting for-profit school practices has failed to pass Congress, largely as a result of heavy lobbying from the industry.

The Association of Private Sector Colleges and Universities, a group that represents for-profit schools, is sharply criticizing the executive order.

"The fact is that the vast majority of private sector schools provide curriculum and training that prepares our men and women in uniform for successful careers in civilian life,” APSCU CEO Steve Gunderson said. “We are committed to veterans and their education, and for this reason we joined with veterans service organizations in a letter to Congress for programs enhancing pre-academic counseling, and the development of a vehicle for individual complaints or concerns by veteran students."

soundoff (66 Responses)
  1. GlobeSolve

    In 2009,, during the Obama administration, student loan repayment was taken away as a possiblility for those joining the national guard and possibly acive duty. The GI bill is not enough to cover the cost of regular for profit private and state universities who's presidents and admins make salaries in the hundreds of thousands. But for right now online schools are the only option somewhat affordable to military. They may not be looked highly upon by employers. But keep in mind that most enlisted for their first 5-6 years are making about $3.50-$7 take home per hour and working full time. It's cheap and online or it's nothing.

    April 27, 2012 at 11:27 am |
    • Howard

      Obama said his father served in WW II? Barack's father served in WW II?
      He said so in a speech. Here is an 18 second video:
      CNN News clip: http://www.youtube.com/watch?v=Fv4jnlkxOaw
      Is he a compulsive liar? Were there no reporters who checked or double checked these statements and called the party on this? They did for everyone else. Why not him?
      Like it or not, here are the facts:
      Barack Hussein Obama Sr. (Obama's father) Born: 4/4/36 Died: 11/24/82 at the age of 46.
      He was 5 years old when WW II started, and less than 9 1/2 yrs old when it ended.

      Lolo Soetoro (Obama's step father) Born: January 2,1935 Died: 3/2/87 at the age of 52.
      He was 6 years old when WW II started, and 10 years old when it ended.

      April 27, 2012 at 10:19 pm |
      • Pete

        Hey Howard,so Pres.Obama made a mistake,didn't your mother and father make a mistake,You!!!!

        April 29, 2012 at 10:04 pm |
      • CW

        I heard Obama say his grandfather served in WWll.

        April 28, 2012 at 5:37 am |
      • jean2009

        Howie is just showing his normal ignorance, and inability to learn anything other than what FOX tells him. President Obama wrote in his biography of his grandfather Stanley Dunham's service during WWII.

        April 29, 2012 at 8:11 am |
      • Howard


        April 29, 2012 at 11:55 am |
      • Valy Cabellon

        Obama is really a pathological liar...we know all know that...just one brave congressman yelled at him ...liar...liar. that's another full proof of being one. Why will America suffer more. Use your mighty pen comes election day in November. Media cannot do anything if we use our universal right to vote for the right guy...even though how much money he paid for the media people.

        April 30, 2012 at 4:36 pm |
  2. TM

    These private sector "colleges" could hardly be called that. I went to one as part of unemployment requirements. I sat in a room, watched streaming video of pre-recorded lectures with no actual practice. The "instructor" said to just memorize the answers for the certification exam. I did better studying on my own at Borders. I say these schools NEED regulation.

    April 27, 2012 at 11:41 am |
  3. ContraryMerry

    I feel very confident that the president is on top of all that has been wrong with our country. He will once again have America as strong and proud as we once were. The corruption that had begun to ruin us will be a thing of the past. Obama 2012.

    April 27, 2012 at 12:24 pm |
    • Howard

      At a time when Americans are tightening their belts, and experiencing hard economic times, Obama overrides congress, and is now giving 147 million in tax payer dollars to ... the Palestinians. Yes, the same Palestinians who danced in the streets, and cheered on 9-11, when over 3,000 innocent Americans were slaughtered ... and, the same Palestinians who are governed by Hamas, an America hating, Islamic terrorist organization. It's time to throw this two faced traitor out of the White House.

      April 29, 2012 at 9:51 pm |
      • Pete

        Just like that traitor Bush ,ha,tellin lies to create wars for his memoirs,after he ran from them,ya right....

        April 29, 2012 at 10:08 pm |
      • Ekaterina

        Obama was, I believe, the only of the curernt contenders who voted AGAINST the 2005 Bankruptcy Reform Act. One of the most mean-spirited, poorly written, misguided, lobbyist-hijacked pieces of legislation to come out that year.He also supports re-visiting the legislation and tightening up on consumer protection stuff. So professionally, I'm more favorably inclined toward his platform than anyone else's.As for abortion, sorry, but I'm more interested in solving the problems of REAL people than I am in worrying about hypothetical people.

        July 31, 2012 at 9:12 am |
    • Valy Cabellon

      It seems that you are not updated with what's happening to our country while Obama is reigning.....why not wake up man and consider our economy, unemployment, housing, real estate breakdown, our status with other countries. Please review our political standing. Read the candidate standing and you'll be amaze to learn more...but not Obama again. Enough!

      April 30, 2012 at 4:25 pm |
      • Pete

        I have,and its better than that thug you want in there.So go back and quit making ignorent statements ,you republicans make a big deal tying your shoes,very pathedic,typical uneducated idiot.....And yes I'm wide awake,your the one in a lousy nitemare..come November...

        April 30, 2012 at 11:06 pm |
    • mike

      you have got to be kidding me!! what the hell are you smoking???????????????

      April 27, 2012 at 12:36 pm |
      • John


        April 28, 2012 at 12:52 pm |
    • jean2009

      Thanks Merry.

      April 29, 2012 at 8:27 am |
  4. Pander Bear

    Thank you Mr. President.

    April 27, 2012 at 12:24 pm |
    • John

      I assume you just got your monthly check?

      April 28, 2012 at 12:53 pm |
    • CA Liberal

      Obama for president 2012. Romney for president 1812.

      April 30, 2012 at 3:26 pm |
  5. mike

    funny how all of a sudden obama is just now coming out on this issue. too little too late. you cannot buy my vote. i want an adult who will get this country back on track. the government has to be cut way down. send the power back to the states where it belongs and was supposed to be in the first place. romney may not do everything i want but i know for a fact that obama will only make it much worse if he gets a second term.

    April 27, 2012 at 12:32 pm |
  6. Arrrrrrr

    Meanwhile he is allowing major cuts to defense and depleting tri care with his ridiculous Healthcare bill. Desperate he is to gain votes anywhere he can because he is nothing but a failure and will not get my vote

    April 27, 2012 at 12:54 pm |
  7. Robert Brown

    A great President says great things to great people!

    April 27, 2012 at 1:08 pm |
  8. L. R. Long

    Mitt Romney is about to learn that he has severly underestimated our President. His bazillions of dollars and the evil right wing spin machine he has working for him are not gonna be enough to defeat a true champion of the middle class, Barack Obama.

    April 27, 2012 at 1:35 pm |
    • Howard

      If you're such a fan of Obama, buy his comedy album when it comes out, or watch him on late night ... but, don't gamble the future of America, by betting our survival on this loser. Thanks to Obama, over 5 trillion has been squandered in just 3 1/2 years ... our credit score has been downgraded ... our debt has just exceeded our GDP ... and, Obama wants to double down on his pathetic failed policies. Unlike you, I love America more than Obama.

      April 28, 2012 at 1:12 pm |
      • CW

        I suppose that you are waiting for Jeb Bush to run.

        April 28, 2012 at 2:22 pm |
      • jean2009

        Howie has been all over the board about who he wants to run....he has backed Newtie, two Ricks, Cain, Palin, Bachmann....and the rest of the unusual suspects.

        April 29, 2012 at 8:32 am |
      • Howard

        JEAN ... YOU'RE A LIAR.

        April 29, 2012 at 11:56 am |
  9. tumbleweed

    I believe in the Free Markets and less knee jerk Gov regulation/intervention. If these vets are so gulible, then it's their own fault. Keep big gov out of the way of business and free markets...go Romney. Sorry soldier boy, its not our problem, its every man for himself, go Romney/Teaparty 2012. You with me fellow conservatives!!

    April 27, 2012 at 1:38 pm |
  10. Howard


    April 27, 2012 at 2:04 pm |
    • Pete

      NOT IF DEMOCRATES HAVE ANYTHING TO DO WITH IT!!!PRES.OBAMA/BIDEN 2012!!!HEY,has anybody stepped forward for the vp job yet,I didn't think so,15 and counting..Mitt the leper for president????

      April 27, 2012 at 5:23 pm |
      • John

        When Romney asks who he wants to be VP that person will accept. People don't come forward and say "pick me"!!!

        April 28, 2012 at 8:31 am |
  11. SEAL Team Alpha and Omega

    Thank God and the American voters who put Obama in power. Just imagine if the far-right had control of veteran's college opportunities. The GOP is doing everything in their power that Satan gives them to ban democracy, crush workers' unions, spit on women's rights and access to health care, put road blocks in place to disenfranchise voters, pass laws that give more power to corporations than citizens, make the National Rifle Association and executive level cabinet post and allow random shootings and killings to occur in our neighborhoods without any accountability or consequences, appoint emergency city managers to overrule all duly elected officials for insane reasons that strip Americans of their voices, etc.

    Let us pray,

    Dear God,

    You know Willard Romney is NOT a Christian even though pastor Joel Osteen says he is. You know President Obama is a solid defnder of the poor and an advocate for the oppressed and poor. For this reason, America thanks you in advance for Obama's reelection this November. With your help, America will return to a nation of greatness and respect and the Republicans will wither like a vine in a barren, dry land without water or hope – just like their puny brains.

    In JESUS name, AMEN.

    April 27, 2012 at 2:09 pm |
  12. SEAL Team Alpha and Omega

    Dear God in Heaven,

    Please cause a giant dump truck to veer into the path of Paul Ryan and crush his bones and tiny brain like a meteroite from space. We pray that Mitt Romney gets sick and dies. Thank you for hearing our prayers.

    In JESUS name, AMEN.

    April 27, 2012 at 2:14 pm |
    • Steveo

      Blasphemy much?

      April 27, 2012 at 2:54 pm |
    • Pete

      Seal teamAlpha,can I pray with you also,ah,the power of prayer!!!I hope the driver speaks no English,LOL!!!

      April 27, 2012 at 5:17 pm |
  13. Lionel

    Thank you Obama for calling out these folks. Latinos love you and we will elect you again in 2012.

    Latinos for Obama 2012

    April 27, 2012 at 2:31 pm |
    • jean2009

      Great-grandmothers for Obama!

      April 29, 2012 at 8:35 am |
  14. NObama 2012

    another NOTHING FROM MR NOTHING (Barry/Barack Sorento/Obama...can't handle the presidency, cant run on his record so...blah blah blah...

    April 27, 2012 at 3:37 pm |
    • Pete

      No republican hypocrite flipfloppers either,blah,blah,blah yourself....smartest thing I've read all day...

      April 27, 2012 at 5:04 pm |
    • jean2009

      Obama2012 is a relative of that other blogger....Blah blah blah blah blah. Neither are out of the crib. I mean their mother's basement.

      April 29, 2012 at 8:38 am |
  15. Al

    So Obama wants to help the Military, but with the same breath he want to cut money from the Military. Obama goes to base after base to thank the troops and he should thank them for it is they how do the real work. Now if Obama was a third of a good leader, he would honor what he said in 2008 that he was going to bring ALL our troops home, but wait what he's saying today is that he wants your vote so that he can keep the troops from coming home, even though OBL is fish food, or is he, if he really was our troops would be home and there is no proof that OBL is what is feeding the fish. I do hope that the troops are smarter than to waste their vote on the type of leadership that has been displayed for the last 3 plus years.

    April 27, 2012 at 3:44 pm |
    • John

      He isn't putting rules, guidelines and laws in place to hurt the oil companies either. He also isn't promoting class warfare against people who worked hard and achieved the American Dream. He is also not against Israel, guns, offshore drilling.......

      April 28, 2012 at 12:47 pm |
  16. CW

    With over twenty years in admissions for proprietary education (for profit), I am well versed on the predatory tactics that are implemented in the recruitment process.
    Students are going in debt in an attempt to go to college, who have not taken any type of entrance exam to determine whether or not the student is capable of such an undertaking.
    Yes, my last employer had a "job placement" department. However, there were no statistics to verify the number of jobs obtained, percentage of graduates placed, starting salary, etc. This is information that in my opinion, should be made available to all prospective students prior to enrollment.
    There are plenty more tactics utilized but it would take too long to discuss all of them here.
    Being a Vietnam veteran, I am motivated to see how I can help this cause.
    The VA has no information yet on how this is going to roll out but I will follow it up and see where I can be of assistance to our vets.
    If you have any information that would be of benefit to me, please, respond.

    April 27, 2012 at 4:01 pm |
    • John

      No information, just wanted to say thanks for your service time. Hopefully this is one area both sides, as well as independents, can agree.

      April 28, 2012 at 12:39 pm |
      • CW

        Thank you, John.

        April 28, 2012 at 2:26 pm |
    • jean2009

      Which college is it that doesn't require an entrance exam?

      College Entrance Exams

      Everyone who wants to go to college has to take a college entrance exam. Whether you're taking the SAT or ACT, CliffsNotes has lots of resources to help you do well on the exam.


      April 29, 2012 at 8:52 am |
      • Rinchin

        You say hackers but you acltualy mean spammers, right? No transactional activity occurs in your forum area, so there's nothing there to hack. Spammers, on the other hand, love spreading their nonsense all over public forums. There are plenty of proprietary programs (meaning F+W might have to spend a few bucks) to thwart the spammers, so I would recommend you take that route quick, easy and relatively painless.

        August 1, 2012 at 3:28 am |
  17. jerry

    oh.... I remember when obama wanted the military to pay for their health care...look it up, his speech was sickening. I can't imagine Presidents Regan, Bush, and Bush allowing the USMC to throw out a Marine Staff Sgt midway through his career for disagreeing with them. This Marine had 9 years invested and loved the corps. He rated an article 15 at the worst...this is OBAMAS LOVE FOR THE MILITARY...

    April 27, 2012 at 4:29 pm |
    • Pete

      Jerry,remember when the expanded health bill for vets came up,your boy McCain whined and voted it down.War hero my ass,look him up the Saigon songbird,that's his nickname when he was prisoner,nice name.His service records are also sealed by his late Admiral father to protect him,nice ha...

      April 27, 2012 at 4:59 pm |
      • jerry

        this the way it is with you nut case kept wingers...always bring up someone else's issues. For you information I was a Marine combat sgt in Vietnam...never had any use for Mccain, arrogant and a big mouth.

        April 28, 2012 at 12:33 pm |
      • John

        Bush from 3.5 years ago isn't enough, now you bring up the guy none of us wanted as president? You lefties are sure in a bad place right now...

        April 28, 2012 at 12:41 pm |
  18. CW

    Why wasn't my previous blog posted?

    April 27, 2012 at 4:56 pm |
    • CW

      It is posted now. Just took a while. Thank you.

      April 28, 2012 at 5:43 am |
      • jean2009

        What a whiner! "Your comment is awaiting moderation"....happens to everyone.

        April 29, 2012 at 8:41 am |
    • CW

      Now it is on file. Just took a while. Thank you.

      April 28, 2012 at 5:46 am |
      • John

        I assume it was "right leaning".
        It is common for CNN to block many of the commnets that are right leaning.

        April 28, 2012 at 12:49 pm |
    • Pete

      Hey john,Jerry,it is relevent because that jackass you were backing up politically last election,didn't ya.And john,we're in a much better place than you with Romney the political leper,LOL!!Your definitly not thinkin smart,ha ha!!!neither of ya!!!Hey Jerry,I salute you on your past service,but that ain't sayin much for your thinkin now,buddy,read up on the songbird.Before ya open yer mouth,don't talk stupid,unless ya want to be treated as one....

      April 29, 2012 at 10:21 pm |
  19. gung hoe

    Hey jerry so pleasant to read your post.The man named obama you really cant expect much from him anyways.The man never held down a job never served our country.Personally if I was still in i would have trouble serving under him,Hes a socialist and to me thats enemy to the U S A.Hes a muslim and christian at the same time.I still havnt figured that one out.

    April 27, 2012 at 6:58 pm |
    • John

      Jean – where are you??? Jean told me yesterday how "community organizer" is a job.... Kind of like "union boss" I guess.

      April 28, 2012 at 12:51 pm |
      • jean2009


        Yes, it is a job and work....and it can be hard work. Much of it is providing outreach services to a community through non-profit organizations...and it takes special skills.

        Working as an attorney is not only work but a job, being a senator is a job and work, writing several books is definitely work and a job, serving on the board of several non-profit organizations is both work and a job.

        Rule of thumb never show up at the board meeting of a non-profit unprepared and ill informed. That is one place where you need to have done your homework, and have your ducks in a row.

        John I feel you have lived a very sheltered and ill-informed life. .

        April 29, 2012 at 8:25 am |
      • jean2009

        BTW being an union organizer is a job and it is hard work. It takes a person who is cool, collected, focused, and able to work with diverse groups to reach a settlement. I am the daughter of one.


        April 29, 2012 at 8:47 am |
    • Pete

      You republicans are in such denile,you can't stop bitchin about the president being a Christian or Muslim,get over it ,he's a Christian,OK.I can't get over how a man, Bush ,could screw up this country so much and Pres.Obama and no one else had any idea what a catastrophe he was walking into.But yes after 3.5 years ,we're slowly, thanks to your obstructionistic bunch on capital hill,getting back on our feet.It took Roosevelt and others 12 yrs to fix Hoover, your other republicans mess,the Great Depression and Clinton 4 yrs to straightin out Bush Sr mess,so there for your political history lesson,sleep well hypocrites....

      April 29, 2012 at 10:44 pm |
  20. jerry

    ok today...obama wants to reframe our policy on Iran...let them produce (some) nuke fuel... while allowing the mass slaughter of 9,000 Syrians and giving the Palestanan terrorist $191,000,00.00. obama does not have an American brain...he is the enemy of America.

    April 28, 2012 at 12:36 pm |
    • Jason

      Bob,Excellent point. And I agree, and found myself in sstnbautial agreement with Obama's speech. I never interpreted him to mean that faith language should be set aside in political discourse. But also, that we need to speak to all (as in God's general revelation, as you so well say).I'm wrestling with the call of Jesus as seen throughout the entire New Testament. And what kind of "truck" that might have, in politics. I do believe that compromise is the best way to get things moving politically, as Reagan was so good at doing (and as George W., as I understand it: has not been, in Washington).But I'm not so sure that this is the way of Jesus and the way of the cross. (so as to avoid any possible misunderstanding, I'm not saying Pres Bush is right.) One could ask as a business person: How can my work be like Christ, and still be "successful"? So I would ask the same of a Christian politician. And I'm sure we'd come up with different answers.I just am seeing the Sermon on the Mount as so basic Jesus, and so political in its wholism, that I can't shake the question I just posed.I do like Obama. We need more like him. By the way, though I think you know this: he is pro-choice on the abortion issue. In context he is saying, IF he held to an abortion being wrong postion.Great post, Bob. Thanks.

      August 2, 2012 at 12:24 am |
  21. Erwin

    I'm so proud today. So proud. We are seeing that ehtyreving we stand for is true. We have such strength. We have such wisdom. America is the example again. We will tell this to our children. Everyone of us is a hero.

    August 1, 2012 at 2:28 am |