Veteran Educators or For-Profiteers? Tuition Responses to Changes in the Post 9/11 GI Bill

36 Pages Posted: 22 May 2018 Last revised: 2 Sep 2019

See all articles by Matthew Baird

Matthew Baird

RAND Corporation

Michael Kofoed

United States Military Academy; IZA Institute of Labor Economics

Trey Miller

RAND Corporation

Jennie Wenger

RAND

Multiple version iconThere are 2 versions of this paper

Date Written: July 19, 2019

Abstract

In 2010, Congress reauthorized the Post-9/11 GI Bill, changing reimbursement rates from widely-varying by-state maximums to a nationwide limit. This created exogenous changes in the financial aid that colleges could claim for veterans, varying in direction and magnitude. We detect tuition responses only for for-profit colleges, where we estimate a one percent pass-through rate. This for-profit response is driven by colleges in states that decreased benefits, colleges with higher concentrations of veterans, and colleges whose pre-change tuition was above the state maximum but below the upcoming increased nationwide level; the last group has a pass-through rate of eight percent.

Keywords: For-Profit Colleges, GI Bill, Bennett Hypothesis

JEL Classification: I22, I23

Suggested Citation

Baird, Matthew and Kofoed, Michael and Miller, Trey and Wenger, Jennie, Veteran Educators or For-Profiteers? Tuition Responses to Changes in the Post 9/11 GI Bill (July 19, 2019). Available at SSRN: https://ssrn.com/abstract=3174763 or http://dx.doi.org/10.2139/ssrn.3174763

Matthew Baird

RAND Corporation ( email )

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Michael Kofoed (Contact Author)

United States Military Academy ( email )

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Trey Miller

RAND Corporation ( email )

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Jennie Wenger

RAND ( email )

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United States
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