Blue Falcons: Politicians, Government Agencies, and Nonprofits Serve Themselves, Not Those Who Have Served

“Blue Falcon”—military slang for a “Buddy F****r”—refers to someone who betrays their comrades to get ahead. It’s a fitting label for disgraced U.S. Congressman Duncan Hunter, a Marine Corps veteran convicted of misusing campaign funds while cloaking himself in patriotic rhetoric. But Hunter isn’t alone. He’s emblematic of a broader betrayal—one that involves politicians, bureaucrats, predatory schools, and veteran-serving nonprofits. Together, they form an ecosystem where self-interest thrives, and veterans are left behind.

Despite endless platitudes about “supporting our troops,” the systems designed to serve veterans—especially in education—are failing. Two of the most generous and ambitious benefits ever created for veterans, the Post-9/11 GI Bill (PGIB) and Department of Defense Tuition Assistance (TA), are now riddled with waste, abuse, and profiteering. The real beneficiaries aren’t veterans, but an extensive network of for-profit colleges, lobbying firms, and institutions that exploit them.

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The GI Bill and DOD Tuition Assistance: A Pipeline for Predators

The Post-9/11 GI Bill was supposed to be a transformative benefit—a way to reward veterans with the chance to reintegrate, retrain, and succeed in the civilian world. At more than $13 billion annually, it is the single most generous higher education grant program in the country. According to a report highlighted by Derek Newton in Forbes, the GI Bill now costs more than all state scholarships and grants combined and represents half of all Pell Grant spending.

And yet, it isn’t working.

A groundbreaking study from the National Bureau of Economic Research (NBER)—conducted by researchers from Texas A&M, the University of Michigan, Dartmouth, William & Mary, and even the U.S. Department of the Treasury—delivers a scathing indictment of the program’s effectiveness. According to the report, veterans who used PGIB benefits actually earned less nine years after separating from the military than peers who didn’t attend college at all. The researchers found:

“The PGIB reduced average annual earnings nine years after separation from the Army by $900 (on a base of $32,000). Under a variety of conservative assumptions, veterans are unlikely to recoup these reduced earnings during their working careers.”

The reason? Too many veterans are enrolling in heavily marketed, low-value schools—institutions that offer little return and often leave students without degrees or meaningful credentials. Veterans from lower-skilled military occupations and those with lower test scores were particularly likely to fall into this trap. These “less advantaged” veterans not only saw worse labor market outcomes but were more likely to spend their GI Bill benefits at for-profit schools with dismal outcomes.

Even worse, the report estimated that the cost to taxpayers for every additional marginal bachelor’s degree produced by PGIB is between $486,000 and $590,000. That’s beyond inefficient—it’s exploitative.

In the Forbes article we put it bluntly:

“This is sad to say, that the GI Bill does not work for many servicemembers, veterans and their families. What's even sadder is that if you drill into the data, to the institutional and program level, it will likely be worse. There are many programs, for-profit and non-profit, that do not work out for servicemembers, veterans, and their families.”

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Tuition Assistance and the DOD’s Open Wallet

The Department of Defense’s Tuition Assistance program also faces exploitation. With few controls, it serves as an open faucet for bad actors who aggressively recruit active-duty service members through deceptive advertising, partnerships with base education offices, and endorsements from shady nonprofits. Just as with the GI Bill, predatory institutions see DOD TA not as an education resource, but as a predictable stream of federal cash.

Military leadership has done little to intervene. The same institutions flagged for fraud and poor outcomes continue to operate freely, bolstered by industry lobbyists and revolving-door influence in Washington.

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Nonprofits and Politicians: Wolves in Patriotic Clothing

The betrayal doesn’t stop with colleges. Many large veteran-serving nonprofits and “military-friendly” initiatives exist more for image than impact. Instead of helping veterans, they prop up harmful systems and launder legitimacy for the very institutions exploiting the military community.

Meanwhile, Congress talks a big game but routinely fails to act. Lawmakers from both parties show up for ribbon cuttings and Veterans Day speeches, but many take campaign donations from subprime colleges and education conglomerates that prey on veterans. They refuse to close known loopholes—like the infamous 90/10 rule—that incentivize for-profit schools to chase GI Bill funds with deceptive tactics.

And all the while, the Department of Veterans Affairs (VA)—underfunded, overburdened, and politically manipulated—struggles to provide the basic services veterans were promised.

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A Sad Reality, and a Call to Action

It’s a bitter irony that programs designed to lift up veterans often lead them into deeper debt, poorer job prospects, and wasted years. The data from NBER, the findings from watchdogs like Derek Newton, and the lived experience of thousands of veterans all point to one conclusion: the Post-9/11 GI Bill, as currently administered, is failing. And so is the broader system around it.

Veterans deserve better. They deserve:

• Strict oversight of predatory colleges and training programs

• Transparency in outcomes for veteran-serving nonprofits

• Accountability from lawmakers and government agencies

• Equitable investment in public and community college options

• A fundamental shift from patriotic lip service to real systemic reform

Until then, the Blue Falcons will continue to circle—posing as allies while feasting on the very benefits veterans fought to earn.

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The Higher Education Inquirer will continue exposing the policies, institutions, and individuals who exploit veterans under the guise of service. If you have insider information or want to share your story, contact us confidentially at gmcghee@aya.yale.edu.

Veterans Left Behind: How Oversight Failures in VA-Approved Education Programs Put Thousands at Risk (Michael S. Hainline)

[Editor's note: Michael S. Hainline is a member of Restore the GI Bill for Veterans.]

Veterans across the country rely on the Department of Veterans Affairs’ (VA) approval system to ensure their education and job training programs are safe, legitimate, and lead to meaningful employment. Yet, thousands have been failed by a system riddled with oversight gaps, conflicting interests, and regulatory loopholes that allow unsafe equipment, poor training, and deceptive schools to remain approved — often at great personal and financial cost to the veterans and taxpayers.

I know this all too well. As a former military police officer who trained as a truck driver in 2016 under a VA-approved program, I was exposed to dangerous, poorly maintained equipment that ultimately caused me to lose the use of my right arm for over a year, a disability I will carry for life. 

Despite repeated complaints to the program staff and the assigned State Approving Agency (SAA), the official body responsible for oversight, my concerns were dismissed, and no corrective action was taken until years later — and only after significant evidence surfaced.

Unsafe Equipment Ignored

During my class, veteran student Mike and I, and non-veteran students Dustin & Richard, discovered that the landing gear on the 1977 Stoughton trailer assigned for training was missing an axle and four wheels. I reported this to the staff, who admitted the equipment was faulty but took no timely corrective action. A veteran student later informed me that the school replaced the landing gear on a similar 1987 Great Dane trailer sometime after our class ended, contradicting official reports submitted to the VA and state approving agencies that claimed no issues existed.

To confirm these claims, I located the trailer used in program advertising and compared photos taken during and after our training. The landing gear had indeed been replaced—freshly painted and altered, as confirmed by Great Dane Trailers’ manufacturer. 

The trucks used for training showed similar problems. According to Vehicle Identification Numbers, three trucks had modifications—such as frame cutting between tandem axles—that Daimler Trucks North America (the manufacturer) neither recommended nor approved. Federal Motor Carrier Safety Administration guidelines were not followed, creating additional safety concerns, per conversations with the Federal Motor Carrier Safety Administration. 

Systemic Oversight Failures

These issues highlight a broader problem: the State Approving Agencies, under contract with the VA, are failing to provide adequate oversight and ensure program quality. The VA Office of Inspector General’s 2018 report (OIG Report #16-00862-179) found that 86% of SAAs did not sufficiently oversee educational programs to ensure only eligible, high-quality programs were approved. The report estimated that without reforms, the VA could improperly pay out $2.3 billion over five years to subpar or fraudulent institutions.

Alarmingly, the VA Veterans Benefits Administration (VBA) is restricted in its ability to question or audit the reports submitted by SAAs. There is no mechanism for veterans to challenge or appeal SAA findings, effectively leaving veterans powerless within a system that is supposed to protect them.

Veteran Service Organizations’ Silence

I sought help from veteran service organizations but found little interest in addressing these critical problems. The American Legion initially responded to my outreach in 2017, engaging in conversations and phone calls. However, within months, communication ceased without explanation. Attempts to meet with American Legion leadership and their legislative contacts, including Dr. Joe Wescott—an influential consultant on veterans’ education—were unsuccessful. Dr. Wescott dismissed concerns about the integrity of the SAA’s targeted risk-based reviews, citing that schools typically fix problems before SAAs visit, and failed to investigate conflicts of interest between report authors and SAA officials.

At the 2024 American Legion convention, a planned meeting between a fellow veteran and Legion leadership was abruptly canceled. Meanwhile, other veteran groups such as Veterans of Foreign Wars (VFW), Disabled American Veterans (DAV), and Veterans Education Success (VES) showed engagement, but the American Legion and Student Veterans of America remained unresponsive.

The American Legion’s own 2016 Resolution #304 warned of the exact issues I and countless other veterans have endured: deceptive practices by some education providers, poor accreditation standards, and underfunded and understaffed SAAs unable to enforce proper oversight.

A Cycle of Scandal

Congressional staff admitted privately that veterans’ education legislation rarely progresses without support from key players like Dr. Wescott and the National Association of State Approving Agencies (NASAA), whose leaders have repeatedly declined to meet with veterans raising concerns. These complex relationships between SAAs, VA officials, veteran groups, and legislators perpetuate a “cycle of scandal” that leaves veterans vulnerable and taxpayers footing the bill.

In 2023, a combat veteran attending the same program I did reported similar frustrations: only one of three trucks was roadworthy, severely limiting practical training time for a full class of students. Despite numerous documented complaints, the NASAA president refused to meet or discuss these issues.

The Human Cost

Beyond financial waste and bureaucratic failures, real human harm occurs. My injury, caused by training on unsafe equipment, robbed me of a year of mobility and continues to affect my life. Thousands of veterans have lost their G.I. Bill benefits, incurred debt for worthless or limited degrees, or been misled about their job prospects after completing programs approved by the very agencies meant to protect them.

The internet is rife with investigative reports exposing waste, fraud, and abuse in VA-approved programs. Headlines like “School Scammers Are Robbing Veterans and the Government Blind” and “For-Profit Colleges Exploit Veterans’ G.I. Bill Benefits” are far too common.

A Call for Reform

Despite these glaring failures, meaningful reform remains elusive. The VA OIG report and numerous investigations call for increased accountability, transparency, and cooperation between the VBA, SAAs, veteran service organizations, and Congress. Veterans deserve a system that genuinely safeguards their education and wellbeing.

My fellow former veteran students and I have organized online and turned to media outlets to break the silence. It’s time for the public and policymakers to hear our stories—not just slogans and “catchy” legislative titles that fail to restore lost benefits or improve program quality.

We veterans demand change—because we have earned more than empty promises and a broken system that leaves us behind.

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Michael S. Hainline is a veteran and advocate living in Pensacola, Florida. He served in active duty and reserve military components and now works to expose the failures of oversight in VA-approved education and job training programs. He can be reached at hainline1962@gmail.com.

Department of Veterans Affairs Delays Answering Questions on GI Bill Complaints

 

(HR 1391). Restoring the GI Bill for Vets Ripped Off by Predatory Schools

The US House Bill to restore GI Bill funds to those who have been ripped off by predatory schools has had little traction so far.  While politicians like to say "thank you for your service," only nine House members have signed on to the Bill, all Democrats. Both Republicans and Democrats have received funds by these schools, which also have lobbyists in DC to promote their agenda.  

A group of folks who have been ripped off by these schools have formed Restore GI Bill for Veterans to share information and organize for justice in this matter. The private group has approximately 250 members and has been active for more than two years. Membership is vetted. 

Trump's DOD Failed to Protect Servicemembers from Bad Actor Colleges, But We Demand More Evidence

The Higher Education Inquirer has been waiting since December 2017 for information from the US Department of Defense (DOD) about decades of predatory behavior by subprime colleges against military servicemembers, a disturbing pattern reduced by the Obama Administration and made worse again by the Trump Administration. We are still waiting for information, nearly seven years later and through multiple efforts, as Donald Trump runs again for President and Commander in Chief of the Armed Forces. And today, with yet another delay, DOD says they won't have the response until after the election.   

In 2012, the Obama Administration, through Executive Order 13607, established policies for increased oversight of schools that received DOD Tuition Assistance (TA) funds. DOD TA is a program that pays schools for servicemembers going through college. For several decades before Obama was the President, subprime schools systematically exploited servicemembers, veterans, and their families, collaborating formally and informally with military officials and educators. They even held conferences at the national and state level through the Council of College and Military Educators (CCME). 

 

As part of Obama era reform, DOD Voluntary Education and their contractor (PwC and later Gatehouse) were to select for review 200 schools at random and 50 schools that were the worst performing. The worst actors could be sanctioned. But it never happened.

In 2017, the Trump Administration began rolling back these protective measures and decided not to provide information to the media to avoid "a witch hunt."  This action shielded bad actor schools from public scrutiny and sanctions that the schools could receive for abusing servicemembers. 

In December 2017, we contacted a DOD VOL ED official who refused to answer us. But based on other bits of information, including data from the Department of Veterans Affairs, we believe we know many of these bad actor schools. Some of those schools, like the politically connected University of Phoenix, would be obvious to those who follow bad actors in higher education. But we wanted the DOD to publicly name them. That DOD official is now working as a special advisor to the Department of Education Federal Student Aid.  Our intent was not to target that official, but to get to the bottom of the problem, which we believe to be at a higher level of management, and possibly to then-President Trump. 

In May 2019, we filed a Freedom of Information request (DOD OIG-2019-000702) asking for a list of the 50 worst actor schools for 2017 and 2018. DOD denied that such a list existed despite evidence to the contrary.  We filed another FOIA request in 2021, 21-F-0411 and even with more information that we provided, they denied that such a list existed. 

Our last attempt for information, DOD FOIA 22-1203-F, was filed in July 2022 to obtain communications between the high-level DOD Voluntary Education official and others.  DOD has given us a number of excuses for the delays, and we have modified the request to limit the search.  In the meantime, we have contacted politicians and national media to help us with what's been going on. So far, nearly seven years later, no one has acted, as servicemembers continue to be ripped off by predatory subprime colleges. 

Related links: 

DoD review: 0% of schools following TA rules (Military Times, 2018)

Schools are struggling to meet TA rules, but DoD isn’t punishing them. Here’s why. (Military Times, 2019)