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Jim Bradley

CHARLOTTE, N.C. - A month after introducing a bill in Congress that would restrict how for-profit colleges spend tax dollars, N.C. Sen. Kay Hagan says it's gaining momentum.

"What this bill does is it tells our for-profit universities and colleges they can no longer use federal taxpayer dollars for marketing, advertising and recruitment," Hagan said.

Hagan released a list of more than 20 organizations from around the country she says are now supporting her bill. The list included Consumers Union, which publishes Consumer Reports Magazine.

Hagan has been critical of the for-profit colleges, saying too many of them use deceptive marketing practices to entice students to take on huge student loans in order to enroll in their programs. The vast majority of those loans are backed by the federal government. In fact, a recent study of the top 15 for-profit colleges and universities showed they receive 86 percent of all their revenue from federally backed student loans and then spend nearly 25 percent of that money on advertising, marketing and recruiting.

Hagan says that money should be going to pay for instruction for students -- not selling the programs.

Her bill has been criticized by the for-profit college industry which says it could put many smaller colleges out of business.

Hagan says she believes the new support for her bill from education and consumer groups is an important step forward in what could be a difficult road to passage in Congress.

Supporters of the Protecting Financial Aid for Students and Taxpayers Act

American Association of Collegiate Registrars and Admissions Counselors

American Association of University Professors

Campus Progress

Consumer Action

Consumers Union

Council for Opportunity in Education

Iraq and Afghanistan Veterans of America

Leadership Conference on Civil and Human Rights

Military Officers Association of America

Mississippi Center for Justice

National Consumer Law Center

National Council of La Raza

National Education Association

Public Advocates

Student Veterans of America

The Education Trust

The Institute for College Access & Success

USPirg

United States Student Association

Vets for Common Sense

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