Avoid the Military Friendly Trap: 5 Red Flags in For-Profit Colleges

Key Takeaways for Veterans and Service Members

• Not all “military friendly” colleges are created equal. Some for-profit schools rely heavily on GI Bill funding while delivering poor student outcomes.
• Five red flags signal risk: aggressive recruiting, questionable accreditation, weak graduation and job placement rates, high student debt, and misleading transfer credit policies.
• For-profit colleges enroll a small share of students but receive a disproportionately large share of GI Bill and federal aid dollars.
• You can verify accreditation, financial stability, and outcomes using public tools like the U.S. Department of Education College Scorecard and VA’s GI Bill Comparison Tool.
• If you suspect deceptive practices, you can file complaints with the VA, FTC, or your state attorney general.

The “Military Friendly” Label: Marketing or Meaning?

The phrase “military friendly” appears on thousands of college websites. It sounds reassuring. But the term is not regulated by the federal government. In many cases, it is a marketing designation provided by private companies based on self-reported data.

For veterans and active-duty service members using GI Bill benefits, the stakes are high. According to federal data, for-profit colleges enroll a smaller portion of U.S. college students but have historically received a disproportionately high share of federal education benefits. Investigations and enforcement actions over the past decade have revealed cases where schools exaggerated job placement rates, encouraged excessive borrowing, or targeted service members primarily because of their guaranteed federal funding.

To protect your hard-earned benefits, look beyond the branding. Here are five red flags that signal when a “military friendly” school may not have your best interests in mind.

Red Flag #1: High-Pressure Recruiting Tactics

What It Looks Like

• Frequent phone calls, texts, or emails pushing you to enroll immediately
• Claims that spots are “limited” or benefits will disappear if you delay
• Recruiters who avoid detailed questions about cost, accreditation, or outcomes

Predatory institutions often use commissioned recruiters. Their goal may be to secure your enrollment quickly, not guide you toward the best long-term outcome.

How to Protect Yourself

1. Never enroll on the first call. Reputable colleges allow time for research.
2. Request all costs in writing, including fees, books, and supplies.
3. Ask for graduation rates, job placement data, and median salaries for your specific program.

If a recruiter avoids written documentation or pushes you to sign before reviewing materials carefully, that is a major warning sign.

Red Flag #2: Questionable or National-Only Accreditation

Why Accreditation Matters

Accreditation determines whether your credits transfer, employers recognize your degree, and graduate schools accept your credentials.

There are two primary types of institutional accreditation:

Type of Accreditation Typically Includes Transferability Regional Accreditation Public universities, nonprofit colleges Widely accepted National Accreditation Many for-profit and vocational schools Often limited

Many for-profit institutions are nationally accredited. While legitimate, these credits often do not transfer to regionally accredited schools. Veterans who later change institutions may be forced to start over.

How to Verify Accreditation

• Check the U.S. Department of Education’s Database of Accredited Postsecondary Institutions.
• Ask specifically if your credits will transfer to at least two public universities in your state.
• Confirm that your program meets licensing requirements if you are entering a regulated profession.

Red Flag #3: Poor Graduation and Job Placement Rates

Look at the Data, Not the Ads

For-profit institutions, on average, have lower graduation rates than public and nonprofit schools. Some have faced penalties for exaggerating job placement statistics.

Key metrics to check:

• Graduation rate within 150 percent of normal program time
• Median earnings after graduation
• Loan default rates

You can find verified data using the College Scorecard at CollegeScorecard.ed.gov.

Questions to Ask

• How many students who start this program graduate?
• What percentage find jobs in their field within six months?
• What employers hire graduates from this program?

If the school cannot provide clear, audited numbers, proceed with caution.

Red Flag #4: High Student Loan Debt Despite GI Bill Benefits

GI Bill benefits are designed to reduce or eliminate tuition costs. Yet many veterans at for-profit schools still take out substantial loans.

Why This Happens

• Tuition priced just above GI Bill caps
• Pressure to borrow for living expenses
• Enrollment in longer or stacked credential programs

Research has shown that students at for-profit institutions often borrow more and experience higher default rates compared to peers at public universities.

Debt Reality Check

1. Calculate total program cost before enrolling.
2. Subtract GI Bill tuition coverage and housing allowance.
3. Determine if loans are absolutely necessary.

If a school is quick to recommend private loans without exploring grants, scholarships, or cheaper alternatives, that is a warning sign.

Red Flag #5: Misleading Credit Transfer and Refund Policies

Transfer Traps

Some veterans discover too late that few of their credits transfer to other institutions. This can exhaust GI Bill eligibility without leading to a recognized degree.

Refund Fine Print

Schools may have strict withdrawal deadlines. If you withdraw after a certain date, you may owe money back to the institution or the VA.

Protect Yourself

• Request the school’s refund policy in writing.
• Ask how many credits typically transfer out.
• Contact another college independently to verify acceptance of credits.

A 7-Step Checklist to Vet Any “Military Friendly” College

1. Verify accreditation through the Department of Education database.
2. Check outcomes on the College Scorecard.
3. Review the VA GI Bill Comparison Tool for caution flags.
4. Confirm program licensing requirements if applicable.
5. Compare total costs with at least two public institutions.
6. Speak to at least one current student or recent graduate.
7. Never rely solely on recruiter statements. Get everything in writing.

Real-World Impact: Why Vigilance Matters

Veterans have reported exhausting months of GI Bill benefits on programs that did not lead to meaningful employment. Others discovered that promised job placement assistance was minimal or nonexistent. In some cases, enforcement agencies have fined or shut down institutions for deceptive practices.

Your service earned you educational benefits. Those benefits should translate into recognized credentials, upward mobility, and long-term stability.

How to Report Predatory Practices

• Submit a complaint through the VA GI Bill Feedback System.
• File a report with the Federal Trade Commission at ReportFraud.ftc.gov.
• Contact your state attorney general’s office.
• Seek guidance from accredited Veterans Service Organizations.

Taking action not only protects you but also helps safeguard fellow service members from similar harm.

Choosing a college is one of the most consequential decisions you will make after service. A true military-supportive institution demonstrates transparency, strong outcomes, fair pricing, and respect for your time and benefits.

Frequently Asked Questions for Veterans and Service Members

What does “military friendly” really mean for a college?

“Military friendly” is a marketing term, not a federal label. You should treat it as a starting point and then check the school’s accreditation, graduation rates, job outcomes, and costs before you enroll.

How can you check if a college is properly accredited?

You can confirm accreditation in the U.S. Department of Education’s Database of Accredited Postsecondary Institutions. You can also ask if the school has regional accreditation and if its credits transfer to public universities in your state.

What are the main red flags to watch out for?

Key red flags include high-pressure recruiting, national-only or unclear accreditation, low graduation and job placement rates, high student debt even with GI Bill benefits, and strict or confusing transfer and refund policies.

How can you compare outcomes and costs before you enroll?

You can use the U.S. Department of Education’s College Scorecard to review graduation rates, earnings, and loan data, and the VA’s GI Bill Comparison Tool to see caution flags and benefit details. Compare these results with at least two public schools.

What should you do if you suspect a college is using predatory tactics?

You can submit a complaint through the VA GI Bill Feedback System, file a report with the Federal Trade Commission at ReportFraud.ftc.gov, contact your state attorney general, and reach out to a trusted Veterans Service Organization for guidance.