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WASHINGTON, DC — On Thursday, October, 27, 2022, the Biden administration finalized regulations on the use of federal student aid regarding veterans using the 9010 rule as well as on schools changing ownership. In light of the tightening regulations, Arnold Ventures Director of Higher Education Kelly McManus issued the following statement:

After years of advocacy from veterans, today the Department of Education finalized regulations closing the so-called 9010 loophole. For decades, unscrupulous for-profit colleges have targeted service members and veterans, using them as a cash cow to evade the caps on federal student aid that for-profit schools must meet. And – even more egregiously – these schools have often provided little or no value to those same service members and veterans. These new regulations will close that loophole and better protect those who have fought for our country. 

We also applaud the Department for taking meaningful steps to prevent for-profit colleges from hiding behind shadowy ownership structures to dodge federal oversight. The change in ownership’ regulations make clear that the Education Department will instead hold institutions to a fair, rigorous set of standards that will ensure both students and taxpayers have the benefit of the Department’s oversight.

There is much more to do – both through regulation, and importantly, through legislation – to protect students and taxpayers from predatory and low-quality institutions. We look forward to working with both the Department of Education and Congress to build a higher education system that delivers consistent value to all students.”