Bill Addresses Loophole in Financing of Veterans' Education February 16, 2012, 5:17 pm Lawmakers introduced bills in both chambers Thursday intended to close a loophole that enables for-profit schools to take advantage of G.I. Bill aid to rake in federal money. Two of the sponsors - Senator Tom R. Carper, Democrat of Delaware, and Representative Jackie Speier, Democrat of California and a member of the House Committee on Oversight and Government Reform - told reporters the law would focus on for-profit schools that accept federal funds to educate veterans but sometimes leave them unprepared to enter the civilian workforce. "It is clear that the business model of some of these for-profit colleges is to become totally reliant on federal funds, making billions in the process and spending a paltry amount on actually educating the students they spend billions to entice," Ms. Speier said. In 1998, Congress instituted the so-called "90-10 rule," requiring that for every nine dollars of tuition covered by federal aid, there should be at least one dollar coming from private funds. The law would close a loophole that counts military education benefits differently from Department of Education aid, which allowed schools to circumvent the rule by designating veterans" education benefits as if the money were not paid by the federal government.