For Profit Colleges Collect Half of All Department of Defense Tuition Assistance Benefits. DOD Tuition Assistance Benefits by Sector, FY2011

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1 For Profit Colleges Collect Half of All Department of Defense Tuition Assistance Benefits DOD Tuition Assistance Benefits by Sector, FY2011 Non Profit Colleges: $119 million 21% For Profit Colleges: $280 million 50% Public Colleges: $163 million 29% For Profit Schools Public Schools Non Profit Schools

2 Where are Department of Defense Tuition Assistance Dollars Going? $100 $90 $97.5 Top Ten Recipeints of DOD Tuition Assistance Benefits, FY2011 $80 $70 $60 $50 $47.3 Dollars in Millions $40 $30 $20 $39.5 $33.2 $31.7 $27.1 $21.2 $18.2 $16.1 $14.0 $10 $0 American Public Education, Inc. University of Maryland* Bridgepoint Education, Inc. TUI Learning LLC Central Texas College* Apollo Group, Inc. Embry Riddle University# Columbia Southern University Grantham University Park University# For Profit Schools Public and Non Profit Schools Note: * indicates public school, # indicates non profit school. Six for profit education companies collect 41 percent of all DOD Tuition Assistance funds.

3 A Significantly Higher Percent of Total DOD Benefits Go to For Profit Colleges, Compared to Other Federal Education Programs Tuition Assistance Benefits, Fiscal Year 2011 (Troops) MyCAA Benefits, Fiscal Year 2011 (Military Spouses) 50% 50% 39% 61% For Profit Schools All Other Schools For Profit Schools All Other Schools Department of Education, Award Year (Civilians) Post 9/11 G.I. Bill, Award Year (Veterans) 75% 25% 62% 38% For Profit Schools All Other Schools For Profit Schools All Other Schools Yet, only Department of Education funds are counted in restriction that for profit colleges get at most 90 percent Federal dollars. Source: HELP Committee analysis of Departments of Defense, Veteran Affairs and Education data.

4 What Are Taxpayers and Servicemembers Getting For Their Money? Student Outcomes at For Profit Colleges Receiving the Most DOD Tuition Assistance Benefits Institution Bachelor s Students Withdrawn Associate Students Withdrawn American Public Education, Inc. 35.1% 46.4% Bridgepoint Education, Inc. 63.4% 84.4% TUI Learning Center, LLC 51.3% N/A Apollo Group, Inc. (University of Phoenix) 50.3% 66.4% Source: HELP Committee analysis of documents provided by schools. For Profit student outcomes based on all students who enrolled between July 1, 2008 and June, as of mid 2010.

5 Funds Collected By For Profit Colleges Increased Quickly Between 2009 and 2011 Top Three Recipients of DOD Tuition Assistance Benefits, FY2009 and FY2011 $100 $98 $90 $80 $70 $73 $60 Dollars In Millions $50 $40 $30 $20 $44 $47 $13 $40 $10 $0 American Public Education, Inc. University of Maryland Bridgepoint Education, Inc. 34 Percent Increase 8 Percent Increase 199 Percent Increase For Profit Schools Public and Non Profit Schools

6 For Profit Colleges Collect Nearly Two Thirds of DOD Military Spouse Education Benefits Military Spouse Career Advancement Accounts (MyCAA) Benefits by Sector, FY2011 Non Profit Colleges: $4 million 7% For Profit Colleges: $40 million Public Colleges: $21 million 32% 61% For Profit Schools Public Schools Non Profit Schools

7 $6 $5.6 Top Ten Recipients of DOD MyCAA Benefits, FY2011 $5 $4.2 $4 $3.8 $3.4 Dollars in Millions $3 $2 $2.7 $2.0 $1.9 $1.9 $1 $1.1 $1.0 $0 Allied Business Schools, Inc.* Apollo Group, Inc. Florida Gulf Coast University Career Step, LLC* Animal Behavior College* University of Maryland System Kaplan Higher Education Corporation Central Texas College Bridgepoint Education, Inc. Penn Foster Education Group, Inc.* For Profit Schools Public Schools Note: * indicates school not subject to Department of Education student protections and regulations.

8 For Profit Colleges Devote Significantly More Federal Funds to Profit and Marketing Apollo Group, Inc. Spending, 2011 American Public Education, Inc. Spending, 2010 Other: 57% Marketing: 23% Profit: 20% Other: 58% Marketing: Profit: 25% Bridgepoint Education, Inc. Spending, 2010 University of Maryland University Campus Spending, 2010 Marketing: 7% Other: 40% Marketing: 30% Profit: 30% Other: 93% Profit: 0% Other Includes: Executive Compensation, Lobbying, Student Services, Administration, Facilities, Instruction, Faculty Salary. Source: HELP Committee analysis of S.E.C. filings and documents provided by schools.

9 For Profit Colleges Strategize Collecting DOD Programs to Satisfy Regulatory Requirements

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