There is good reason why veterans should avoid for-profit-colleges. Very simply, the cost can eat up all of of your G.I. Benefits. Often the schools come-on with a strong sales pitch and lure you into signing up for programs that you can find at state and city colleges for much less. It’s important to know that generally you can’t transfer credits from these for-profit-schools to another college or university. They don’t accept them.

Sam Oakford works for the New Economy Project, formerly NEDAP, a consumer counseling and economic advocacy group. He talks to veterans all of the time who find that they are in financial trouble because they used their G.I. Benefits and borrowed money to pay for an education at a for-profit college or trade school. Most find they have worthless educations and owe a great deal of money.

The statistics about for-profit colleges reveal a depressing pattern of debt and failure for many students who see the schools as a way to improve their lives. A report on the findings of a two year investigation by the Senate Health, Education, Labor and Pensions Committee led by Iowa Senator Tom Harkin found widespread problems in this industry.

For starters, tuition at for-profit colleges is six times higher than at community colleges and twice as high as you might find at a four-year public school. That might be okay if students benefited.

But the senate study of 30 for-profit schools found many students attracted by web marketing, TV and other heavy advertising don’t achieve academic success. Fifty-four percent of the students enrolled in the 2008-2009 school year withdrew by the summer of 2010.

Most of the students borrowed money to pay their tuition, and close to one in four defaulted on their federal student loans within three years of leaving school. Why should you care if you are not a student?

According to the report taxpayers invest more than $30 billion in these schools. Most of the money comes from federal funds. 25% comes from Department of Education, 37% Post 9/11 G.I. Bill benefits, and 50% Department of Defense Tuition Assistance Funds.

Senator Harkin said, “In this report, you will find overwhelming documentation of overpriced tuition, predatory recruiting practices, sky-high dropout rates, billions of taxpayer dollars spent on aggressive marketing and advertising, and companies gaming regulations to maximize profits. These practices are not the exception — they are the norm; they are systemic throughout the industry, with very few exceptions,”

In a news release on its website the Association for Private Sector Colleges and Universities says the senate report, “…continues in the tradition of ideology overriding reality. The report twists the facts to fit a narrative…”

Believe what you will and beware.

Payday and Auto Title Loans

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