For-Profit Colleges Exploit Veterans’ GI Bill Benefits: An Overlooked Crisis in Addressing Veterans’ Needs in Los Angeles and Across the Country

In a significant move to address veteran homelessness, President Trump signed an executive order aimed at accelerating the development of housing for veterans in Los Angeles, where the overlapping crises of unaffordable housing, failed healthcare and homelessness have led to the conditions that have resulted in creating one of the largest populations of homeless veterans in the United States. The order emphasized the need for streamlining bureaucratic processes and reallocating resources to facilitate the construction of residences on VA property in West Los Angeles with the goal of housing up to 6,000 veterans by 2028. Veterans transitioning to civilian life face many challenges, from securing adequate housing to pursuing higher education. While the Trump administration has accurately emphasized the critical need for addressing housing shortages among veterans, one glaring issue remains largely ignored — the exploitation of veterans’ GI Bill benefits by for-profit colleges. This crisis not only leaves many struggling with insurmountable student loan debt but also undermines their ability to achieve financial stability and, in turn, secure affordable housing.

The GI Bill was created to offer educational opportunities to veterans, enabling them to build careers and achieve economic independence. Under the Post-9/11 GI Bill, veterans receive funding for tuition, housing allowances, and additional educational expenses, providing a lifeline as they return to civilian life. Yet, for-profit colleges have turned what should be a tool of empowerment into a vehicle for exploitation. These institutions target veterans aggressively, leveraging loopholes like the “90/10 Rule,” which allows GI Bill funds to bypass restrictions on federal funding quotas. The consequence is a predatory focus on veterans, lured by promises of flexible programs, career placement assistance, and accelerated degrees — many of which fail to deliver meaningful results.

Veterans who enroll in for-profit colleges often end up saddled with exorbitant tuition costs that exceed their GI Bill coverage. To make up the difference, they turn to federal or private loans, creating a debt burden that can take years — or decades — to pay off. 

Veterans who enroll in for-profit colleges often end up saddled with exorbitant tuition costs that exceed their GI Bill coverage. To make up the difference, they turn to federal or private loans, creating a debt burden that can take years — or decades — to pay off. This financial strain impacts more than just their educational journey; it directly affects their ability to afford stable housing and meet basic needs. This predicament is underscored in the story of David Boyer, a navy veteran who served on three aircraft carriers, who shared his experience of betrayal and debt in a recent interview with Jessica Dietzler, founder of the “Rad Futures” podcast. Boyer earned a degree in electronic engineering from ITT, a for-profit college, using his GI Bill benefits, only to find that prospective employers deemed his degree worthless. Unable to secure a job in his field, Boyer faced mounting loan payments and financial insecurity, a struggle that ultimately hindered his ability to find suitable housing. Today, Boyer has authored a petition called “Restore Veterans’ Futures” to shed light on the crisis of how veterans who have served both active and reserve duty, exited the military only to be steered by the Veterans Affairs (VA) office toward for-profit colleges that not only stole their GI benefits, but left them unemployable with useless degrees and excluded from the Borrowers Defense path toward student loan cancellation by means of holding accountable predatory and defunct colleges. 

Further compounding the predicament of veterans who have been defrauded of their GI benefits is the fact that student loans have been uniquely stripped of constitutional bankruptcy protections. In practice, this means that unlike other types of consumer debt, student loans cannot be discharged through bankruptcy proceedings. This makes it particularly challenging for veterans who are struggling to repay their student loans from predatory for-profit institutions, as they do not have the option to seek relief through bankruptcy despite the fraud they have been subjected to and the lack of gainful employment they continue to experience. 

The Trump administration’s efforts to address housing shortages for veterans must also account for the economic realities that drive homelessness and housing instability. Student loan debt from predatory for-profit colleges exacerbates these issues, and reintegration into civilian life. Without intervention, these intertwined crises will continue to deepen.

Advocacy groups and policymakers have long called for measures to curb the exploitation of GI Bill benefits. Closing the 90/10 loophole, enforcing stricter performance benchmarks for schools, and holding for-profit colleges accountable for their outcomes are critical steps. Additionally, initiatives that support veterans in making informed educational choices, such as the VA’s GI Bill Comparison Tool, can help reduce the risk of falling victim to predatory practices. However, these reforms must be coupled with broader efforts to ensure veterans have access to affordable housing. Financial relief programs that address both housing needs and educational debt could provide a more comprehensive solution, empowering veterans to focus on rebuilding their lives rather than grappling with the fallout of exploitation.

Veterans such as Boyer deserve more than hollow promises; they deserve real solutions that honor their service and sacrifice. Addressing housing shortages is undoubtedly vital, but it cannot be done in isolation from the broader financial challenges veterans face — including the burden of student loan debt incurred through exploitative for-profit colleges. The Trump administration has the opportunity to tackle these interconnected crises head-on, ensuring that veterans can transition to civilian life with dignity, stability and hope for the future. By prioritizing both housing and educational reform, the nation can uphold its commitment to those who have served—and empower them to thrive in the country they have defended.

Lisa Ansell is the Associate Director of the USC Casden Institute and Lecturer of Hebrew Language at Hebrew Union College-Jewish Institute of Religion Los Angeles.