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For-profit colleges receive money for servicemembers and their spouses attending college while still in the military. [104] In fiscal year 2018, for-profit colleges received $181 million or 38 percent of all DOD TA funds. For-profit schools also receive money from DOD for education of military spouses. The program is known as MyCAA. [105] [106]
Little evidence from research that incentive programs lead to student achievement. In 1994 the Urban Institute conducted a study and found some positive short-lived effects of merit pay, but concluded that most merit pay plans "did not succeed at implementing lasting, effective ... plans that had a demonstrated ability to improve student learning."
Once money is invested in the account, it grows tax-free, and withdrawals from the plans are not taxed when the money is used for qualified educational expenses. [2] Only 2.5 percent of all families had 529 college savings accounts in 2013. [3] As of August 2020, more than $360 billion was invested in 529 college savings plans. [4]
An incentive program is a formal scheme used to promote or encourage specific actions or behavior by a specific group of people during a defined period of time. Incentive programs are particularly used in business management to motivate employees and in sales to attract and retain customers.
The law was intended "to strengthen the educational resources of our colleges and universities and to provide financial assistance for students in postsecondary and higher education". It increased federal money given to universities, created scholarships, gave low-interest loans for students, and established a National Teachers Corps.
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Federal Work-Study (FWS) Program: The Work-Study Program provides part-time jobs for undergraduate and graduate students with financial need. This program allows students to earn money to help pay education expenses. The program encourages community service work and work related to a student's course of study.
A limited and restricted budget is one of the biggest factors that have prevented the public sector from successfully implementing a pay for performance program. As noted by Antoinette Weibel, the private sector simply has more money and will always be more fluid with cash than any public sector organization.