The 90/10 rule in the Higher Education Act requires proprietary schools to obtain at least 10 percent of their revenue from a source other than Title IV education funds, which is the primary source of federal student aid. The quality assurance measure is intended to ensure that some students are willing to commit their own resources toward a program. But DoD and VA funds are not defined as Title IV funds, allowing them to be counted in the 10-percent category.
This is the supposed “loophole” as many believe the law should apply to all federal education funds. This “loophole” has provided incentives for some schools to target veterans as students. Since we believe that closing this loophole is Better for Veterans, we have done so on our Military Friendly® Schools methodology.