Executive Summary
Laws and Precedent
A New Horizons Computer Learning Center franchise in Jacksonville and its owner, Coastal Corporate Training, Inc., have agreed to pay $500,000 to resolve allegations that they overcharged the U.S. Department of Veterans Affairs (VA). The settlement, announced Monday, September 8, 2025, addresses claims that the school failed to report tuition waivers, falsely certified compliance with a ban on incentive compensation, and misrepresented adherence to a rule governing veteran enrollment between 2015 and 2020.
Settlement Details
The core of the allegations centers on the misuse of the Post-9/11 Veterans Education Assistance Act of 2008, commonly known as the GI Bill, which provides crucial financial support for service members, veterans, and their eligible dependents. Coastal Corporate Training, Inc. allegedly failed to deduct tuition waivers from student accounts, which should have reduced the VA’s financial obligation. Additionally, the company is accused of falsely certifying that it complied with federal laws.
These false certifications relate to two critical areas. First, the school allegedly paid commissions or bonuses based on student enrollments, violating a statutory ban designed to prevent predatory recruitment practices. Second, it is accused of falsely certifying compliance with the “85/15” rule, which ensures a diverse funding source for educational programs by limiting the proportion of students whose tuition is paid by the institution or the VA.
Understanding the Regulations
The Post-9/11 GI Bill is a cornerstone program, offering significant educational benefits to those who have served our nation. To protect these benefits and ensure fair practices, several federal regulations are in place for participating educational institutions.
Tuition Waivers
One key regulation stipulates that if a school offers to waive tuition for a student receiving less than 100-percent assistance from the VA, this waiver must be reported. The student’s portion of the tuition, which the VA pays, must then be proportionally reduced. This prevents schools from effectively double-dipping or inflating costs.
Incentive Compensation Ban
Federal law explicitly prohibits schools participating in federal student aid programs, including the GI Bill, from paying any commission, bonus, or other incentive payment based directly or indirectly on securing student enrollments. This measure is intended to prevent aggressive recruitment tactics that could mislead prospective students or prioritize profit over educational quality.
The 85/15 Rule
A federal regulation known as the “85/15” rule prohibits the VA from approving enrollment in any course for an eligible veteran if, for that period, more than 85% of the enrolled students have all or part of their tuition paid for by the educational institution or the VA. This rule aims to ensure that VA-funded programs maintain a healthy mix of students and are not solely reliant on government funding, which helps maintain program quality and market relevance.
Investigation and Resolution
The settlement is the result of a coordinated investigative effort. The U.S. Attorney’s Office for the Middle District of Florida worked closely with the U.S. Department of Veterans Affairs – Office of Inspector General to bring this matter to resolution.
This resolution underscores the Department of Justice’s commitment to safeguarding taxpayer funds and protecting the integrity of veteran education benefits. It sends a clear message that institutions participating in federal programs must adhere strictly to established regulations.
