Bill and Department of Defense Tuition Assistance program, were not subject to this cap until enactment of the American Rescue Plan in 2021.
[4] In 1972, for-profit colleges became eligible to receive federal student financial aid under Title IV.
It required that a for-profit school receive no more than 85% of its revenue from Title IV financial aid sources.
Military and veteran benefits, such as the GI Bill and Department of Defense Tuition Assistance Program, are not subject to the 90–10 cap.
In 2012, the Senate Health, Education, Labor and Pension Committee investigation revealed the deceptive practices that some for-profit colleges use to recruit troops and veterans.
Many Members of Congress, including Democratic senators Dick Durbin, Tom Carper, and Richard Blumenthal and Representative Jackie Speier, introduced legislation to close this "loophole."
[13] Many proprietary colleges receive more than 90% of their revenue from federal sources if military and veteran benefits are included in the calculation.
In November 2015, Senator Dick Durbin [D-IL] introduced legislation to include military and veteran benefits in the 90–10 cap.
[16] In 2015, Secretary Hillary Clinton expressed support for the inclusion of military and veteran education benefits in the 90% cap.
[14] The change was included in the stalled Protecting Our Students and Taxpayers Act of 2015, introduced by Senators Dick Durbin, Jack Reed, Elizabeth Warren, and Richard Blumenthal.