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VEP Supports the PARITY Act

A coalition of Veteran advocacy organizations sent a letter to the United States Senate in strong support of the Promoting Access and Revenue Integrity Through Institutional Transparency Act, known as the PARITY Act, introduced by Senator Jim Banks. The bill repeals the 90/10 rule as it applies to proprietary institutions under Title IV of the Higher Education Act of 1965.

For student Veterans, this legislation is long overdue.

What the 90/10 Rule Actually Does

The 90/10 rule caps the share of revenue a proprietary institution can receive from federal sources at 90 percent. On its face, that sounds like a consumer protection measure. In practice, it has become one of the most significant barriers to educational choice that Student Veterans face today.

In 2021, Congress expanded the rule to count GI Bill benefits and Department of Defense Tuition Assistance toward the 90 percent cap. That change quietly redefined benefits that Veterans earned through service as if they were federal subsidies. They are not. The GI Bill is deferred compensation. It is a benefit paid for with time in uniform, time away from family, and in many cases time in combat. Treating it as a taxpayer handout gets the premise exactly backwards.

Why the Rule Hurts the Veterans It Claims to Protect

When a school gets close to the 90 percent cap, it has one rational response: stop enrolling Veterans. The math is that simple. Every additional Veteran on the rolls pushes the institution closer to a regulatory cliff.

The result is that student Veterans across the country are being turned away, waitlisted, or nudged into less suitable programs, not because they are unqualified, and not because the school is low quality, but because their enrollment creates a compliance problem. That is the opposite of how any education policy aimed at Veterans should work.

Student Veterans are not a risk to be managed. They are adults, consumers of higher education, and in many cases, nontraditional students balancing careers, families, and service connected disabilities. They deserve the same access to flexible, career focused programs that every other student enjoys.

What the Coalition Is Calling For

In the letter sent today, the undersigned coalition urges the Senate to advance the PARITY Act without delay. The coalition’s message is straightforward: Veterans earned their benefits, and they have earned the right to choose where to use them. Congress should honor that choice rather than constrain it.

Read the Letter

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