September 20, 2016

Acting Ranking Member Takano Applauds DeVry Education Group for Taking Steps to Protect Students Veterans and Service Members

Washington, D.C. – Today, Rep. Mark Takano (D-Calif.), Acting Ranking Member of the House Committee on Veterans’ Affairs, expressed strong support for DeVry Education Group’s announcement that it will voluntarily limit the amount of federal funding it receives and close a loophole that encourages aggressive recruitment of student veterans and service members.

In a statement released this morning, DeVry pledged to receive no more than 85 percent of revenue from federal sources, compared to the current 90 percent threshold mandated by federal law. It also promised to end the “90-10 loophole” by counting Military Tuition Assistance and GI Bill money as federal funds, which is currently not required by law and will prevent the deliberate targeting of students using Military and VA benefits.

“I applaud DeVry Education Group for proactively addressing major challenges in the for-profit education industry and acting to protect service members, veterans, and taxpayers,” said Rep. Takano. “The steps DeVry took today will remove its incentive to aggressively recruit those who serve our country, and will prevent taxpayers from supporting the school if it is not adequately serving students. I strongly encourage the company to continue working toward the goal of providing an affordable, high-quality education.

“While Devry’s decision to self-regulate is cause for celebration, it also serves a reminder that Congress is failing to shield students – particularly veterans and service members – from education companies that are more interested in their money than their future. Since being elected to Congress, I have consistently advocated for increasing oversight and changing the rules governing for-profit education companies. It is disappointing and revealing that an industry player is more alert to the problem than policymakers.

“I hope this announcement highlights the urgency of permanently closing the “90-10 loophole” and ensuring educational institutions are keeping their promises to students. While DeVry is taking steps to act responsibly, many others are not.”