Idaho’s attorney general, Lawrence Wasden, is one of 22 attorneys general asking Congress to do something about what they claim is a loophole in federal law that permits for-profit schools to receive all or most of their revenue from federal sources, according to a story in Idaho Statesman.
The law was authorized 14 years ago. It says for-profit schools may realize not more than 90 percent of their income via federal loans and grants. The problem, says the letter, rests with money from the GI Bill and Veterans Assistance aid programs because they are exempt from that rule. That “violates the intent of the law,” says the letter.