Veteran Educators or For-Profiteers?

Tuition Responses to Changes in the Post-9/11 GI Bill

Published in: Journal of Policy Analysis and Management (2022). doi: 10.1002/pam.22408

Posted on RAND.org on August 11, 2022

by Matthew D. Baird, Michael S. Kofoed, Trey Miller, Jennie W. Wenger

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In 2010, Congress reauthorized the Post-9/11 GI Bill by changing reimbursement rates from by-state maximums to a nationwide limit. This policy created exogenous variation in financial aid for veterans at private universities. We detect changes in tuition only for for-profit colleges, where we estimate a 1 percent pass-through rate. This response is mainly from states with decreased benefits; colleges with more veterans, and colleges whose pre-change tuition was above the state maximum but below the new nationwide level had a pass-through rate of 8 percent. We also find a negative association between changes in benefits and overall student enrollment for for-profit colleges.

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